Vertical linkages between foreign MNEs in service sectors and local manufacturing firms

Sergio Mariotti, Marcella Nicolini and Lucia Piscitello

Structural Change and Economic Dynamics, 2013, vol. 25, issue C, 133-145

Abstract: This paper deals with backward and forward linkages stemming from foreign multinational enterprises (MNEs) in service sectors, and their impact on the productivity of local manufacturing firms. Using a database on foreign MNEs in service sectors in Italy, over the period 1999–2005, we find that: (i) backward linkages impact local supplier firms’ productivity because of the increased demand; (ii) forward linkages positively influence local customer firms thanks to the increased competition in the local relevant service sector. However, we also find that the absorptive capacity as well as the foreign involvement of local manufacturing firms acts as a moderating factor for the transmission of spillovers.

Keywords: Backward and forward linkages; FDI; Spillovers; Services (search for similar items in EconPapers)
JEL-codes: C23 D24 F23 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:25:y:2013:i:c:p:133-145

DOI: 10.1016/j.strueco.2012.07.001

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