One-size-does-not-fit-all : the heterogeneous impact of BITs on regions participating in GPNs

Laura Resmini, Luca Bettarelli, Vieri Calogero, Simona Comi, Mara Grasseni

Bilateral Investment Treaties (BITs) are vital for safeguarding and enhancing foreign investments, pivotal in Global Production Networks (GPNs). This study assesses the impact of BITs on GPNs driven by EU multinational enterprises, with a focus on regions hosting corporate headquarters due to their influence on the local economy. While considering the endogeneity of BITs and their diverse effects on GPN structures, our findings reveal a positive correlation between BITs and GPNs, notably stronger in less globally integrated regions. Additionally, the influence varies based on firms' network role (headquarters or subsidiaries) and the spatial distribution of headquarters. BITs stimulate GPNs in less internationalized regions but have minimal impact in headquarters-rich regions.

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Year of publication:	2024
Authors:	Resmini, Laura ; Bettarelli, Luca ; Calogero, Vieri ; Comi, Simona ; Grasseni, Mara
Published in:	Papers in regional science : the journal of the Regional Science Association International. - [Amsterdam] : Elsevier B.V., ISSN 1435-5957, ZDB-ID 1472494-7. - Vol. 103.2024, 2, Art.-No. 100013, p. 1-11
Subject:	BITs \| Global production networks \| Headquarters regions \| Regional Development \| Regionalentwicklung \| Regional development \| Unternehmensnetzwerk \| Business network \| Regionale Wirtschaftsintegration \| Regional economic integration \| Welt \| World \| Multinationales Unternehmen \| Transnational corporation \| Globalisierung \| Globalization \| Unternehmenszentrale \| Corporate headquarters \| Internationale Arbeitsteilung \| International division of labour