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ABSTRACT
The internationalization of production activities is having a profound impact on regional economies. In this regard, it is generating externalities not only in the countries where production is offshored, but also in the domestic networks in which the internationalizing firms are located. Therefore, this paper investigates the effects of outward foreign direct investment and offshore outsourcing activities on domestic supplier populations in industrial districts (IDs). The aim is to evaluate the ability of these systems to react to the structural shocks associated with internationalization strategies. The results show that local network resilience is generally higher in advanced forms of IDs, where the role of large firms or service activities is more relevant.
Acknowledgements
I thank Fabiano Schivardi, Andrea Pozzi, Paolo Pavone, Jason Potts, John Foster, Prasada Rao, Peter Earl and participants at the 14th International Schumpeter Society Conference for helpful comments and discussions. I also thank two anonymous referees for their insightful comments. I am grateful to Sergio Mariotti, Marco Mutinelli and ICE for providing access to the Reprint database. I am thankful to the Italian Tax Revenue Agency and Soluzioni per il Sistema Economico S.p.A. for providing support for this research.
Disclosure statement
No potential conflict of interest was reported by the author.
ORCID
Jacopo Canello http://orcid.org/0000-0002-7510-7238
Notes
1. These manufacturing industries are proxied in this empirical analysis by sector studies D07B, D08U and D09A. A summary of the data-cleaning process is presented in the appendix. The list of ATECO Codes included in these sector studies can be found in Table S.1.
2. This issue has been discussed by Suedekum and Blien (Citation2007).