Innovations as factor of absorptive capacity of FDI spillovers across regions of Russian Federation

Alexander Didenko () and Tatiana Egorova

MPRA Paper from University Library of Munich, Germany

Abstract: We study how innovations affect increase of regional total factor productivity (TFP) as a result of productivity spillovers from foreign direct investment (FDI), and confirm the presence of phenomenon in Russian data. TFP is modeled using data envelopment analysis (DEA) with the human capital, energy and capital as inputs, and the gross regional product as output. We develop innovations index for the regions of the RF, proxying for regional absorptive capacity, based on 17 variables, characterizing economic, social and infrastructural aspects of regional development. FDI variable accounts for spatial distribution of FDI flows. We confirm the presence of FDI spillovers in Russia and moderating role of innovations.

Keywords: FDI; productivity spillovers; innovations; absorptive capacity; data envelopment analysis (search for similar items in EconPapers)
JEL-codes: F21 O11 O30 R11 R12 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-cis, nep-cse, nep-eff and nep-tra
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Citations: View citations in EconPapers (3)

Published in Review of Business and Economic Studies 3.2(2014): pp. 75-84

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Journal Article: Innovations as factor of absorptive capacity of fdi spillovers across regions of Russian Federation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:59346

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