Does distance matter in spillover?

László Halpern () and Balazs Murakozy ()

The Economics of Transition, 2007, vol. 15, pages 781-805

Abstract: Our aim in this paper is twofold: to find whether FDI causes horizontal or vertical productivity spillovers to domestically-owned Hungarian manufacturing firms, and to see if distance matters in spillovers. For this exercise we use a large panel of Hungarian firms and different panel models. Consistently with previous research, at the country level, we find positive vertical spillovers but no evidence of positive horizontal spillovers. By taking distance into consideration, however, we find positive horizontal spillovers for domestic firms close to foreign-owned firms. By constructing spillover measures weighted by distance, we find similar patterns. Our results underline the importance of labour market rigidity and the local nature of knowledge in the case of horizontal spillovers. Copyright (c) 2007 The Authors
Journal compilation (c) 2007 The European Bank for Reconstruction Development .

Date: 2007
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0351.2007.00308.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Does Distance Matter in Spillover? (2005)
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: http://EconPapers.repec.org/RePEc:bla:etrans:v:15:y:2007:i::p:781-805

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0967-0750

Access Statistics for this article

The Economics of Transition is edited by Philippe Aghion and Wendy Carlin

More articles in The Economics of Transition from The European Bank for Reconstruction and Development
Series data maintained by Christopher F. Baum ().