Productivity spillovers from foreign direct investment: evidence from Turkish micro-level data

Syeda Tamkeen Fatima

The Journal of International Trade & Economic Development, 2016, vol. 25, issue 3, 291-324

Abstract: This paper analyzes the productivity spillovers from foreign direct investment (FDI) using Turkish firm-level data for a more recent time period, 2003--2010, which coincides with significant FDI inflows both in manufacturing and service sectors in the region. The empirical model is derived from endogenous growth theory whereby the rate of technological progress is partly determined by technology transfers and spillovers from international contacts, our exclusive focus being on FDI-induced spillovers. The impact of FDI onto the firm-level productivity is evaluated via the channels of horizontal and vertical linkages. The empirical results show that horizontal linkages decrease the productivity of firms, whereas vertical linkages exert a positive impact onto the local productivity levels, thereby drawing attention of policy makers towards strengthening of supplier--buyer relationship between local and multinationals in order to optimize the benefits from FDI. This study also acknowledges the heterogeneity of local (foreign) firms and their differential capacity to absorb (exude) the FDI-induced externalities.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://hdl.handle.net/10.1080/09638199.2015.1050057 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jitecd:v:25:y:2016:i:3:p:291-324

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638199.2015.1050057

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().