* * * *

This paper analyses the locational determinants of FDI inflows in Italy. Given the discrete nature of the data (count data), a random-effect negative binomial-regression model is used to test the a priori expectations on the locational determinants of FDI inflows.The results show that the number of new foreign entrants is fostered by the following provincial characteristics: level of infra-structure, demand level, education attainment and prior concentration of manufacturing plants (in particular, of foreign-owned manufacturing plants). The results also confirm that a high labour cost hinders foreign entry.

[JEL Code: F23, R30, C35]

* <r.basile@isae.it>, Ricercatore e Coordinatore dell’Unità di Progetto sull’Analisi Territoriale