Foreign direct investment and reverse technology spillovers: The effect on total factor productivity

Edmund Amann and Swati Virmani ()

OECD Journal: Economic Studies, 2014, vol. 2014, issue 1, 129-153

Abstract: The paper analyses the “feedback effect” of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth in emerging economies via technology spillovers across borders. We study the effect of R–D spillovers resulting from outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from inward FDI flows. The result confirms that FDI enhances productivity growth; however the impact is much larger when R-D-intensive developed countries invest in the emerging economies than the other way round. Country-specific bilateral elasticities also support this outcome. JEL classification: F210, F430, F620, O470. Keywords: Outward FDI, Inward FDI, Reverse technology spillovers, Total factor productivity.

JEL-codes: F21 F43 F62 O47 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1787/eco_studies-2014-5jxx56vcxn0n (text/html)
Full text available to READ online. PDF download available to OECD iLibrary 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:oec:ecokac:5jxx56vcxn0n

Access Statistics for this article

More articles in OECD Journal: Economic Studies from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().