Geographical Indications and FDI in European Agri-Food Sectors

This study analyzes how the European Union's Geographical Indication (GI) scheme influences agri-food foreign direct investment (FDI) across European regions. Using a novel dataset, it shows that GIs significantly attract FDI, especially in regions with weaker institutions, where they serve as signals of local quality and capability. GI designation boosts local employment beyond agriculture, driving shifts toward higher value-added activities. The findings highlight positive spillovers, increased FDI inflows, and contributions to rural development and global competitiveness. Maps show GI distribution in Europe for 2003 and 2019.