Catching-Up to Foreign Technology? Evidence on the "Veblen-Gerschenkron" Effect of Foreign Investments

Giovanni Peri
Authors registered in the RePEc Author Service: Dieter M. Urban

No 10893, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The presence of foreign multinational enterprises may benefit local economies. In particular, highly productive foreign-owned firms may promote technological catch-up of local firms. Such channel of spillovers is defined as "Veblen-Geschenkron" effect of Foreign Direct Investments and is analyzed in this article. Rather than the overall density of foreign-owned plants in a region or sector, it is their productivity advantage that determines the positive effect on domestic firms in geographical and technological proximity. We test this hypothesis using new firm-level data for German and Italian manufacturing firms during the 90's. We find evidence of a significant Veblen-Gerschenkron effect which is robust to different ways of measuring total factor productivity (TFP) of firms and to different empirical specifications.

JEL-codes: F23 O47 R11 (search for similar items in EconPapers)
Date: 2004-11
New Economics Papers: this item is included in nep-dev, nep-geo, nep-ifn and nep-ino
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Peri, Giovanni and Dieter Urban. "Catching-Up To Foreign Technology? Evidence On The 'Veblen-Gerschenkron' Effect Of Foreign Investments," Regional Science and Urban Economics, 2006, v36(1,Jan), 72-98.

Downloads: (external link)
http://www.nber.org/papers/w10893.pdf (application/pdf)

Related works:
Journal Article: Catching-up to foreign technology? Evidence on the "Veblen-Gerschenkron" effect of foreign investments (2006)
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:nbr:nberwo:10893

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w10893

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().