Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia

Savuth Cheng ()

Economics Bulletin, 2012, vol. 32, issue 3, 2015-2025

Abstract: This paper investigates productivity spillovers from Foreign Direct Investment (FDI) to the host country. By using firm-level data from Cambodia and by regressing domestic firms' total factor productivity (TFP) and labor productivity on FDI, the study reveals that domestic firms significantly benefit from productivity spillovers when their level of technology is moderately below that of foreign competitors. The finding suggests that promoting FDI in Cambodia is needed when the technology gap exists.

Keywords: FDI; Cambodia; Productivity; Spillovers; Technology Gap; Absorptive Capacity (search for similar items in EconPapers)
JEL-codes: F2 O3 (search for similar items in EconPapers)
Date: 2012-07-20
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Citations: View citations in EconPapers (2)

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