Productivity Spillovers from Foreign Direct Investment: The Case of Ethiopia

Abeba Nigussie Turi ()
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Abeba Nigussie Turi: Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic

No 2015/29, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: This paper presents the spillover effect resulting from the foreign direct investment with a focus on the manufacturing firms in Ethiopia. Being one of the pillars of the Growth and Transformation Plan (GTP), identifying the productivity spillovers arising from the FDI to the sector is timely. The research covers extensive econometric analysis based on the Central Statistics Agency’s (CSA) survey, for the years 2004 up to 2010, on the manufacturing firms and an Input-Output matrix, for the year 2005/6, constructed by the Ethiopian Development Research Institute (EDRI). My analysis suggests that there is an econometric evidence for positive Backward spillovers and negative Forward spillovers to the total productivity of the manufacturing firms in the country. The paper’s findings on this aspect are limited. Because, the analysis entirely rely on industry level secondary data and only one year Input-Output matrix. Therefore, there is a potential for further research work; given this benchmark finding.

Keywords: Foreign Direct Investment; Spillover Effect; Total Factor Productivity (search for similar items in EconPapers)
JEL-codes: F2 F21 F23 (search for similar items in EconPapers)
Pages: 53pages
Date: 2015-12, Revised 2015-12
New Economics Papers: this item is included in nep-afr, nep-cse, nep-eff, nep-int and nep-sbm
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