2023
DOI: 10.1111/pirs.12758
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From local to global, and return: Geographical indications and FDI in Europe

Riccardo Crescenzi,
Fabrizio De Filippis,
Mara Giua
et al.

Abstract: The Geographical Indications (GIs) scheme of the European Union guarantees visibility and protection to high‐quality agri‐food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri‐food Foreign Direct Investment (FDI) in European NUTS3 regions, using a novel dataset and a Generalized Propensity Score Matching approach. Areas endorsed with GIs attract more FDI in agri‐food related activities than their non‐GI counterparts. Positive effects, esti… Show more

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Cited by 8 publications
(3 citation statements)
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“…The average quality of products certified by public labels and the reduction in related information asymmetry are higher than those for private certifications (Biondo, 2014). These reflections provide evidence in support of the recent reform of GI regulation (in force from 2024) that stresses the role of community‐tailored policy tools, such as GIs, in managing sustainable local–global linkages of the agri‐food sector (Crescenzi et al., 2023).…”
Section: Discussionmentioning
confidence: 85%
See 1 more Smart Citation
“…The average quality of products certified by public labels and the reduction in related information asymmetry are higher than those for private certifications (Biondo, 2014). These reflections provide evidence in support of the recent reform of GI regulation (in force from 2024) that stresses the role of community‐tailored policy tools, such as GIs, in managing sustainable local–global linkages of the agri‐food sector (Crescenzi et al., 2023).…”
Section: Discussionmentioning
confidence: 85%
“…GIs generate several benefits evidenced in the literature: premium pricing (Menapace & Moschini, 2012), farmers' income (Hughes, 2009), consumers' preferences (Menapace et al., 2011), trade (de Filippis et al., 2022), local development (Crescenzi et al., 2022) and sustainability (Gocci & Luetge, 2011). In global markets, the literature demonstrates that obtaining a GI avoids misleading labelling, confers greater consumer trust in the authenticity of products (Deselnicu et al., 2013; Menapace et al., 2011), and attracts foreign direct investment (Crescenzi et al., 2023). This not only guarantees fairness and equity among trade parties, but also affects international demand (Menapace & Moschini, 2012) and consumers' willingness to choose these products (Santeramo & Lamonaca, 2019).…”
Section: Introductionmentioning
confidence: 99%
“…The GPS extends the binary treatment proposed by Rosenbaum and Rubin [30] to continuous treatment scenarios with the aim of balancing the distribution of covariates in the treated and control group [31]. Several papers recently used this approach to evaluate agrifood policies, including [32,33]. In this paper, in fact, all NUTS3 crop observations are treated (irrigated), but with different levels of treatment.…”
Section: Methodsmentioning
confidence: 99%