An Econometric Study of Estonia and Slovenia: The Effect of FDI on Labour Productivity

Priit Vahter

Chapter 6 in Technology Transfer via Foreign Direct Investment in Central and Eastern Europe, 2006, pp 96-125 from Palgrave Macmillan

Abstract: Abstract The aim of Chapter 6 is to study the effects of FDI on labour productivity in Estonia and Slovenia in the of manufacturing sector. This selection of countries allows the analysis to use firm-level panel data at a level of aggregation and scope rarely accessible even in Western economies: the research is based on firm-level panel data of the manufacturing industries of Estonia and Slovenia from the second part of the 1990s until 2001. The analysis studies the correlation between foreign equity participation in the firm and the firm’s own productivity — i.e. the ‘own-firm’ effect in the terminological tradition of Aitken and Harrison (1999). This helps to provides the answer as to whether there exist intra-industry (within the same sector) spillovers from foreign affiliates to firms with no FDI and to other foreign affiliates in these two countries.

Keywords: Gross Domestic Product; Host Country; Labour Productivity; Spillover Effect; Domestic Market (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-0-230-52448-4_6

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DOI: 10.1057/9780230524484_6

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