FDI and the Consequences Towards more complete capture of spillover effects

Bruno Merlevede and Koen Schoors

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

Abstract: We analyze productivity spillovers of FDI on domestic companies, both within and across industries. In the identification of intraindustry spillovers, we separate out labor market effects from other effects. Interindustry spillovers are identified through upstream, downstream, and supply-backward linkage effects. Dynamic input output tables are used to construct the linkages. For a panel of Romanian firms, we find evidence that labor market effects differ from other intraindustry effects. Spillovers across industries dominate those within industries. The supply-backward effect behaves as predicted by theory. Firm-specific level of technology, firm size, and ownership structure are all found to affect spillovers.

Keywords: FDI; spillovers; absorptive capability; firm size; ownership structure (search for similar items in EconPapers)
JEL-codes: F2 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2006-03
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (21)

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Related works:
Working Paper: FDI and the Consequences: Towards more complete capture of spillover effects (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:06/372

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