The role of Italian FDI in Southeast Europe's international integration. A focus on investors from the Marche region

Southeast European countries have experienced significant economic integration into the world economy since 2000, through international capital flows and especially foreign direct investment (FDI). The work sheds light on recent trends in Italy-Western Balkans economic integration through FDI and ot...

Full description

Saved in:
Bibliographic Details
Published in:The European journal of comparative economics : EJCE 2012-12, Vol.9 (3), p.395-424
Main Authors: Cutrini, Eleonora, Spigarelli, Francesca
Format: Article
Language:English
Subjects:
Alliances
Analysis
Capital flow
Case studies
case study
Economic aspects
Economic impact
Economic integration
Equity
Europe
FDI
Forecasts and trends
Foreign direct investment
Foreign investment
Foreign investments
Global economy
Growth rate
Industrial development
Integration
International
International economic integration
Investment companies
Investors
Italy
Manufacturing
Outsourcing
Southeast Europe
Studies
Textiles
Trends
Value chain
Western Europe
World economy
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Southeast European countries have experienced significant economic integration into the world economy since 2000, through international capital flows and especially foreign direct investment (FDI). The work sheds light on recent trends in Italy-Western Balkans economic integration through FDI and other non-equity modes (NEMs). The methodology applied is based on country-level analysis, enriched by a case study approach. Main trends, characteristics and motivation of investments in the area are investigated. Based on this evidence, we suggest that the phenomenon of Italian integration in the Western Balkans is broader than official statistics would indicate, since Italian firms often set up subsidiaries through various non-equity arrangements. The surge in FDI in the area is recent, therefore it is not surprising that the main determinants are cost reductions and new market opportunities. What is interesting in this context is that local entrepreneurs regard efficiency-seeking investments as profitable only if they are connected to market-seeking goals. We find evidence also of localized industrial development stimulated by the entry of Italian firms, which is activating subcontracting relationships with existing companies in the host region. Further and in depth studies are needed to investigate the phenomenon.
ISSN:1824-2979
1824-2979