Efficiency externalities of trade and alternative forms of foreign investment in OECD countries

Krishna G. Iyer, Alicia Rambaldi () and Kam Ki Tang ()
Additional contact information
Krishna G. Iyer: Department of Applied and International Economics, Massey University, Palmerston North, New Zealand, Postal: Department of Applied and International Economics, Massey University, Palmerston North, New Zealand

Journal of Applied Econometrics, 2008, vol. 23, issue 6, pages 749-766

Abstract: The literature on the spillover effects of trade and inflows of foreign direct investment (FDI) has concentrated on technological externalities. Little effort has been directed towards identifying their efficiency externalities. This paper measures the efficiency externalities of trade and various forms of foreign investment for a sample of 20 OECD countries between 1982 and 2000 using a stochastic frontier approach. Trade and all foreign investment inflows are found to enhance efficiency, whereas outflows of FDI are found to exacerbate inefficiency. The efficiency externalities from foreign investment are contingent on the absorptive capacity of the host economies. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2008
View list of references

Downloads: (external link)
http://hdl.handle.net/10.1002/jae.1024 Link to full text; subscription required (text/html)
http://qed.econ.queensu.ca:80/jae/2008-v23.6/ Supporting data files and programs (text/html)

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: http://EconPapers.repec.org/RePEc:jae:japmet:v:23:y:2008:i:6:p:749-766

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

Access Statistics for this article

Journal of Applied Econometrics is edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().