Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328898 
Year of Publication: 
2023
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 11 [Issue:] 11 [Article No.:] 273 [Year:] 2023 [Pages:] 1-16
Publisher: 
MDPI, Basel
Abstract: 
Reflections on the factors that influence the delocalization of Italian companies to other countries, arising from a rapidly changing world economy, offer invaluable insight into companies facing similar tough choices. Usually, this decision is attributed to economic, fiscal, and institutional factors. This article examines the process of delocalization of Italian enterprises and empirically verifies the main factors which influence the delocalization of Italian enterprises to East European Countries. The results suggest that 'labor market regulation', 'business regulation', and 'size of government' or better said, the labor cost the host country, is the main incentive of Italian enterprises to delocalize their production. Empirical results also show that institutional factors such as 'rule of law', 'control of corruption', 'political stability', and 'broadband infrastructure' have a positive and significant correlation with the delocalization of Italian enterprises to the East European Countries. The results in this case suggest that Italian companies are looking for an environment in which the state knows how to enforce their own rules, but also a state that is somewhat 'corruptible'.
Subjects: 
delocalization
organization of production
East European Countries
Italian companies
offshoring
labor market regulation
instructional factors
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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