Foreign direct investment spillovers within and between sectors: Evidence from Hungarian data

Koen Schoors and B. van der Tol
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B. van der Tol: -

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: This article analyses how FDI influences labour productivity of domestic firms in Hungary. We find that foreign firms perform better than local firms. The presence of foreign firms has a positive spillover effect on labour productivity of local firms in the same sector, specifically in very open manufacturing sectors. Spillover effects between sectors are found to be relatively more important than spillover effects within sectors. Foreign investment in user sectors has a positive spillover effect on local suppliers, while the opposite holds for foreign investment in supplier sectors. Absorption and openness play a significant role in these spillover effects.

Keywords: Foreign direct investment; sectoral spillover; intersectoral spillover (search for similar items in EconPapers)
JEL-codes: F2 O3 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2002-10
New Economics Papers: this item is included in nep-eec and nep-ifn
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Citations: View citations in EconPapers (103)

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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:02/157

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