Agglomeration economies, local cluster and foreign direct investments a pilot study for emilia Romagna region

This article evaluates the determinants of FDI location in Italy. The focus of this pilot investigation is on the specific characteristics of municipalities located in the Emilia Romagna region over the period 2002-2007. A negative binomial estimation model is employed. It is found that the concentration of foreign economic activity is positively related to knowledge variables (i.e. R&D investments, the presence of a university and the presence of a district area) and productive structure variables (i.e. capital stock, labour cost and business services). Traditional infrastructural characteristics such as highways, railways and seaports, often regarded as important location determinants, are not robust with respect to the specification of the estimating equation.