When does FDI have positive spillovers? Evidence from 17 transition market economies

Yuriy Gorodnichenko, Jan Svejnar and Katherine Terrell

Journal of Comparative Economics, 2014, vol. 42, issue 4, 954-969

Abstract: We use rich firm-level data and national input–output tables from 17 countries over the 2002–2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). We document that backward linkages have a consistently positive effect on productivity of domestic firms while horizontal and forward linkages show no consistent effect. We also examine how the strength of spillovers varies by sector, FDI source, institutional environment (corruption, red tape, level of development), firm’s distance to the technological frontier, and other firm- and country-specific characteristics.

Keywords: FDI; Spillovers; Institutions; Transition economies; Efficiency (search for similar items in EconPapers)
JEL-codes: F23 M16 O16 P23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (101)

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Working Paper: When Does FDI Have Positive Spillovers? Evidence from 17 Transition Market Economies (2014)
Working Paper: When Does FDI Have Positive Spillovers? Evidence from 17 Transition Market Economies (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:42:y:2014:i:4:p:954-969

DOI: 10.1016/j.jce.2014.08.003

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