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Multinational enterprises in Italy: insights from firm-level data

Author

Listed:
  • Gianmarco Cariola

    (Bank of Italy)

  • Giovanni Battista Carnevali

    (Bank of Italy)

  • Andrea Linarello

    (Bank of Italy)

  • Francesco Manaresi

    (Bank of Italy)

  • Litterio Mirenda

    (Bank of Italy)

  • Emanuele Russo

    (Bank of Italy)

  • Matteo Sartori

    (Bank of Italy)

  • Gianluca Viggiano

    (Bank of Italy)

Abstract
This paper assesses the economic significance of multinational enterprises (MNEs) in the Italian business sector. Using a novel database that integrates various sources of information on firm ownership and activities between 2010 and 2022, we present several key insights regarding MNEs. MNEs account for one-fifth of employment and over 35% of value added, with marked differences between Northern and Southern Italy. Even after accounting for sectoral and geographic specialization, MNEs are shown to be larger and more productive than non-MNEs. We also provide evidence of a substantial wage premium associated with MNEs. Over the past decade, MNEs have contributed more than proportionately to the growth in firm size observed in Italy. They are also found to be more innovative and more export-oriented, partly because of intra-group trade.

Suggested Citation

  • Gianmarco Cariola & Giovanni Battista Carnevali & Andrea Linarello & Francesco Manaresi & Litterio Mirenda & Emanuele Russo & Matteo Sartori & Gianluca Viggiano, 2024. "Multinational enterprises in Italy: insights from firm-level data," Questioni di Economia e Finanza (Occasional Papers) 894, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_894_24
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2024-0894/QEF_894_24.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    multinational firms; economic growth; wage premium; intra-group trade;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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