FDI Contribution to Technical Efficiency in the Tunisian Manufacturing Sector: Evidence from Micro-panel Data

Sofiane Ghali and Sami Rezgui

International Economic Journal, 2011, vol. 25, issue 2, 319-339

Abstract: This paper investigates the contribution of FDI to firms' technical efficiency based on a two-stage empirical method. Using panel data for 674 firms belonging to the Tunisian manufacturing sector and observed over the period 1997-2001, a bootstrap procedure is applied to correct for serial correlation affecting DEA technical efficiency scores estimated in a first stage. Results obtained from second-stage regressions show that FDI presence at the firm level has a positive effect on its technical efficiency. However, horizontal FDI spillovers are not evidenced while sectoral export activity represents a potential source of technology spillovers for local firms.

Keywords: FDI; technical efficiency; technology spillovers; two-stage estimation; bootstrap (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1080/10168737.2010.504215

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