Productivity Spillovers from Foreign Investment: The Role of Neglected Conditionalities

Laura Resmini and Marcella Nicolini

No DYNREG11, Papers from Economic and Social Research Institute (ESRI)

Abstract: offered significant incentives in order to attract foreign direct investments (FDI), being motivated to do so by expectations of possible spillover benefits. Using an unbalanced panel of firm level data in Bulgaria, Poland and Romania over the 1995-2003 period, we examine the impact of foreign firms on domestic firms’ productivity. In particular, we try to answer the following research questions: 1) Are there any spillover effects of FDI, and if so, are they positive or negative? 2) Are spillover effects more likely to occur within or across sectors? 3) Are the existence, the direction and the magnitude of spillovers conditioned by region, sector and firm-specific characteristics? Our findings show that FDI spillovers do exist both within and across complementary manufacturing sectors, and that inter-sectoral spillovers dominate intra sectoral effects. More interestingly, we find that geography, technological content of foreign firms’ production, and domestic firm size are all factors able to condition the exploitation of productivity spillovers. Although these results should be interpreted with caution, they provide a good starting point for further research in this area.

Keywords: DYNREG; foreign direct investment; transition countries; spillovers (search for similar items in EconPapers)
JEL-codes: F23 P31 P52 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2007
Note: DYNREG Research Project – Dynamic Regions in a Knowledge-Driven Global Economy: Lessons and Policy Implications for the European Union
References: View references in EconPapers View complete reference list from CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: The Impact of Mnes on Domestic Firms in CEECS: A Micro-Econometric Approach (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:dynreg11

Access Statistics for this paper

More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().