Productivity Spillovers From Foreign Direct Investment: Evidence From UK Industry Level Panel Data

Xiaming Liu, Pamela Siler, Chengqi Wang and Yingqi Wei
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Xiaming Liu: Aston Business School
Pamela Siler: University of Abertay Dundee
Chengqi Wang: University of Abertay Dundee

Journal of International Business Studies, 2000, vol. 31, issue 3, 407-425

Abstract: This paper examines intra-industry productivity spillovers from foreign direct investment (FDI) in the UK manufacturing sector. The empirical analysis uses panel data for 48 UK industries over the period 1991 – 1995. A major contribution is empirical evidence on spillover effects in situations where the host country is developed. The results indicate that the very presence of FDI has a positive spillover impact on the productivity of UK-owned firms. The analysis also shows that the extent to which local firms benefit from the introduction of advanced technology depends largely on their own technological capabilities.© 2000 JIBS. Journal of International Business Studies (2000) 31, 407–425

Date: 2000
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