Attractiveness and exogenous direct investment in mountain regions: An exploratory investigation in the Aosta Valley, Italy.

This paper presents an analysis of exogenous direct investments in high mountain areas, focusing on the case of the Aosta Valley, a small high mountain region in Northern Italy. More specifically, the work focuses on the results of six case studies of exogenous direct investments (investors coming from other countries or from other Italian regions) in the manufacturing and services sectors. These studies were conducted through semi-structured direct interviews, and were aimed at analysing the characteristics, the determinants and the effects of these investments on the local economy. The goal of the work is to investigate whether and how a remote and marginal region like the Aosta Valley can attract exogenous investments, by trying to identify its strengths and its weaknesses in these regards, and what effects they have on regional development. Interestingly, the analysis highlights that exogenous direct investments can be an important factor of development for these areas, especially as they enhance diversification, innovation, and access to new markets. Mountain areas like the Aosta Valley in some respects are attractive for external investors; however, they should improve location factors such as accessibility and human capital, in order to increase inflows of direct investments in the future.