The role of geographical and temporary proximity in MNEs' location and intra-firm co-location choices

Katiuscia Lavoratori, Sergio Mariotti, Lucia Piscitello
2020 Figshare  
This paper investigates the role of geographical and temporary proximity in the location and co-location decisions of manufacturing activities by foreign multinational enterprises (MNEs). Empirical analysis shows that foreign MNEs co-locate their new manufacturing plants with their plants already operating in the same manufacturing activity, while geographical proximity exerts a much weaker role when the latter operates in services activities. This is especially true in the case of
more » ... ase of knowledge-intensive business services, where the travelling and meeting of professionals allows temporary proximity. Moreover, a spatial econometric extension of the analysis confirms a geographical decay effect for intra-firm co-location with activities located in contiguous provinces.
doi:10.6084/m9.figshare.12091023.v1 fatcat:ve3xjvrhu5hwrlwv6tqa3wun3q