Home versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers

Priit Vahter and Jaan Masso ()

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2007, vol. 53, issue 2, 165-196

Abstract: This paper investigates the effects of both inward and outward foreign direct investment (FDI) on productivity in manufacturing and services sectors. The main novelty is the analysis of the spillover effects of outward FDI that may occur outside the investing firms on the rest of the home country. Our results based on panel data from Estonia do not indicate much spillover effects of outward or inward FDI that are robust to different specifications of the estimated model, the spillover variable or the sector studied.

Keywords: foreign direct investment; spillovers; home country effects; productivity (search for similar items in EconPapers)
JEL-codes: F10 F21 F23 (search for similar items in EconPapers)
Date: 2007
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Related works:
Working Paper: Home versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers (2006)
Working Paper: Home Versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers (2005)
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