The 'Marco Polo' Effect: Chinese FDI in Italy

Chatham House Programme Paper 2010/04

24 Pages Posted: 7 Mar 2010

See all articles by Carlo Pietrobelli

Carlo Pietrobelli

University Roma Tre, Department of Economics; United Nations University (UNU-MERIT)

Roberta Rabellotti

University of Pavia

Date Written: March 4, 2010

Abstract

• The study investigates the motivations driving Chinese outward direct investment to Italy. The analysis is based on secondary sources and in-depth interviews with key informants and senior managers of Chinese affiliates in Italy.

• The empirical analysis shows that the evolution of the Chinese pattern of entry to Italy is in line with the model followed by Chinese firms for direct investment in other European countries: starting with small scale operations in trade-related activities, and then evolving towards the acquisition of tangible and intangible resources deemed necessary to increase Chinese presence in international markets and, more generally, to upgrade its technological and production capacities.

• Chinese investments in Italy are increasingly targeting the acquisition of design and brands in key Italian sectors of specialization, and technological capabilities in sectors such as metalworking.

• Chinese multinational enterprises also are investing in Italy to get access to local competitive advantages in sectors such as automotives and home appliances. This location choice is clearly linked to the intention to tap local competences available at the cluster level.

Keywords: Outward FDI, China, Italy

JEL Classification: F23

Suggested Citation

Pietrobelli, Carlo and Rabellotti, Roberta, The 'Marco Polo' Effect: Chinese FDI in Italy (March 4, 2010). Chatham House Programme Paper 2010/04, Available at SSRN: https://ssrn.com/abstract=1564568 or http://dx.doi.org/10.2139/ssrn.1564568

Carlo Pietrobelli

University Roma Tre, Department of Economics ( email )

Via Silvio D'Amico 77
ROMA, 00154
Italy

United Nations University (UNU-MERIT) ( email )

Maastricht
Netherlands

Roberta Rabellotti (Contact Author)

University of Pavia ( email )

Corso Strada Nuova, 65
27100 Pavia, 27100
Italy

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