Chiara Bentivogli, Luca Cherubini, Giovanni Iuzzolino

Territories' Attractiveness: Contextual Factors

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Keywords: foreign direct investment, local systems, institutions, Italy.

Despite the country's traditional difficulty in attracting foreign investment, since 2000 foreign direct investment in Italy has picked up, in line with the increased globalization of production. This paper presents the main features of a new database on direct investment compiled by the Bank of Italy for balance of payments purposes and available since 2007 with a sub-regional breakdown. Using that database we analyze the contextual factors affecting the attractiveness of Italy's territories for foreign direct investment and in particular the potential appeal of the quality of institutional and social factors.

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