The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choicesLavoratori, K. ORCID: https://orcid.org/0000-0002-0078-4525, Mariotti, S. and Piscitello, L. (2020) The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices. Regional Studies, 54 (10). pp. 1442-1456. ISSN 1360-0591
It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. To link to this item DOI: 10.1080/00343404.2020.1732901 Abstract/SummaryThis paper investigates the role of geographical and temporary proximity in the location and co-location decisions of new manufacturing activities by foreign multinational enterprises (MNEs). Empirical analysis confirms that foreign MNEs co-locate their new manufacturing plants with their plants already operating in the same activity, while geographical proximity exerts a much weaker role when the latter operate in other manufacturing and services activities. This is especially true in the case of knowledge intensive business services, where temporary proximity is more easily obtainable through the travelling and meeting of professionals. Moreover, a spatial econometric extension of our analysis confirms a geographical decay effect for intra-firm co-location with activities located in contiguous provinces.
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