Absorptive Capacity and FDI Spillovers: Evidence from Quantile Regressions
Syeda Tamkeen Fatima
The International Trade Journal, 2017, vol. 31, issue 4, 360-385
Abstract:
Using Turkish firm-level data for the period 2003–2010, we look at the relationship between foreign direct investment, absorptive capacity, and spillovers at a disaggregated level, and analyze whether firms operating in different quantiles of the productivity distribution respond differently to foreign presence and changes in absorptive capacity. The results reveal that, for a given level of foreign presence, it pays to increase the absorptive capacity of firms operating in lower quantiles. When it comes to inter-industry spillovers, it is counterproductive to increase the absorptive capacity of firms already operating in higher quantiles, as this diverts resources from other productive activities.
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:taf:uitjxx:v:31:y:2017:i:4:p:360-385
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DOI: 10.1080/08853908.2017.1301277
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