The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany

Giovanni Peri and Dieter Urban

No 164, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: The presence of foreign multinational enterprises (MNEs) can benefit local economies. In particular, if MNEs are very productive compared to domestic firms, they may promote learning and catch-up of local firms. Such a channel of spillovers from MNEs to local firms is known as the Veblen- Geschenkron effect. Rather than the overall density of MNEs in a region or sector, it is their initial productivity advantage on the local firm to determine the positive effect on domestic productivity growth. We test this hypothesis using firm level data for German and Italian companies during the 90ies and we find evidence of a significant and robust Veblen-Gerschenkron effect.

Keywords: Veblen-Gerschenkron Effect; FDI; Spillovers; Productivity (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2002-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.dagliano.unimi.it/media/WP2002_165.pdf (application/pdf)

Related works:
Working Paper: The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany (2003)
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:csl:devewp:164

Access Statistics for this paper

More papers in Development Working Papers from Centro Studi Luca d'Agliano, University of Milano Contact information at EDIRC.
Bibliographic data for series maintained by Chiara Elli ().