Show simple item record

When Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economies

dc.contributor.authorGorodnichenko, Yuriy
dc.contributor.authorSvejnar, Jan
dc.contributor.authorTerrell, Katherine
dc.date2007-09
dc.date.accessioned2007-10-16T20:09:19Z
dc.date.available2007-10-16T20:09:19Z
dc.date.issued2007-10-16T20:09:19Z
dc.identifier.urihttps://hdl.handle.net/2027.42/57179
dc.description.abstractWe use firm-level data and national input-output tables from 17 countries over the 2002-2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). Providing evidence from a larger sample of countries and greater variety of firms than existing studies, with separate estimates by firm size, age, and sector, we show: a) backward spillovers (stemming from supplying a foreign firm in the host country or exporting to a foreign firm) are consistently positive; b) horizontal spillovers are mostly insignificant but positive for older firms and firms in the service sector; d) forward spillovers (from purchasing from foreign firms or importing) are also positive only for old and service sector firms. We find no support for the hypothesis that spillovers are greater for FDI with more advanced technology. While efficiency of domestic firms’ is affected by the business environment, the strength of FDI spillovers is not, either when measured by the degree of corruption, bureaucratic red tape or by differences across regions that vary in terms of development. Testing whether spillovers vary with the firm’s “absorptive capacity” we find: i) distance from the efficiency frontier tends to dampen horizontal spillovers in manufacturing and backward spillovers among old firms; ii) whereas firms with a larger share of university educated workforce are more productive, they do not enjoy greater FDI spillovers than firms with less educated workers. FDI spillovers hence vary by sectors and types of firms.en_US
dc.format.extent264203 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_USen_US
dc.relation.ispartofseriesIPC Working Paper Series No. 58en_US
dc.subjectFDI, Spillovers, Transition Economies, Efficiencyen_US
dc.subject.otherF23, M16, O16, P23en_US
dc.titleWhen Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economiesen_US
dc.typeWorking Paperen_US
dc.subject.hlbtoplevelSocial Sciences
dc.contributor.affiliationumInternational Policy Center (IPC); Gerald R. Ford School of Public Policyen_US
dc.contributor.affiliationotherUniversity of California, Berkeleyen_US
dc.contributor.affiliationumcampusAnn Arbor
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/57179/1/FDI Spill 09-18-07.pdfen_US
dc.owningcollnameInternational Policy Center (IPC) - Working Paper Series


Files in this item

Show simple item record

Accessibility: If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.