Migration and the Location of MNE Activities. Evidence from Italian Provinces

Tracking the Van: The role of forward linkages in logistics MNEs' location choices across European NUTS 3 regions

“…Following Alcácer et al (2018), in Mod. 2 we test a second‐stage regression in which we include the residual of the FL with retail sectors variable As a robustness we include the residual in a CLM model (see also Benfratello et al, 2022). Since the coefficient does not have a statistically significant mean and standard deviation, we can conclude that our model already addresses potential sources of heterogeneity (Alcácer et al, 2018), and that demand‐driven linkages exert a positive effect across the board.…”

“…To capture the role of forward linkages in logistics FDIs' location decisions among a set of locations, we implement a conditional logit model (CLM) (McFadden, 1974) coherent with past empirical literature investigating location choices (Ascani et al, 2016; Belderbos et al, 2017; Benfratello et al, 2022; Castellani et al, 2021; Goerzen et al, 2013). As profit‐maximizing economic actors, firms will choose the location yielding the highest net profits.…”

“…The existing literature on MNEs' location choices has rarely employed MXL, despite the advantages associated with it. Notable exceptions are relatively recent and include works by Defever (2006), Ascani et al (2017) and Benfratello et al (2022). The present analysis implements a random‐coefficient derivation of the MXL, in line with Defever (2006) and Ascani et al (2017) and Benfratello et al (2022) with the aim of analysing whether MNEs have heterogeneous preferences over location attributes when they strategically select a location for greenfield investment.…”

“…Notable exceptions are relatively recent and include works by Defever (2006), Ascani et al (2017) and Benfratello et al (2022). The present analysis implements a random‐coefficient derivation of the MXL, in line with Defever (2006) and Ascani et al (2017) and Benfratello et al (2022) with the aim of analysing whether MNEs have heterogeneous preferences over location attributes when they strategically select a location for greenfield investment. Accounting for heterogeneity of MNE locations' characteristics formally means that the parameter β, associated with an observable characteristic x of location j , can vary randomly across MNEs.…”

“…Following Alcácer et al (2018), in Mod. 2 we test a second-stage regression in which we include the residual of the FL with retail sectors variable 24 As a robustness we include the residual in a CLM model (see also Benfratello et al, 2022).…”