Sellar, C: Italian firms in Eastern Europe

From an economic standpoint, the enlargement of the European Union means much more than commercial and political integration. It also means a merger and re- working of pre-existing production networks and structures, dating back to the 1970s and 1980s. This work focuses on a more recent case of such expansion of networks and structures: the outsourcing of clothing and textile industries from industrial districts in Italy to Eastern Europe. It builds upon examples from four case study areas in Eastern Europe and the Former Soviet Union. It shows how Italian firms progressed from a light form of involvement, such as subcontracting, towards deeper involvement, such as joint ventures and foreign direct investments. In doing so, it argues that the enlargement of the European Union has shaped the patterns of Italian investments. Comparing the work of Italian textile and clothing firms in areas that joined the EU in 2004 (Slovakia), 2007 (Romania and Bulgaria) and non candidates for EU membership (Ukraine) this research shows the ways in which institutional change influenced the patterns and strategies of Italian investments in the region.