Horizontal and Vertical Technology Spillovers from FDI in Eastern Europe

Cristina Jude

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Abstract: The aim of our paper is to empirically estimate the direction and magnitude of technological spillovers from FDI using a plant level dataset of Romanian firms for the period 1999-2007. We use the Levinsohn Petrin (2003) methodology in order to estimate total factor productivity and compute several measures of spillover effect based on time varying Input-Output tables. We find local suppliers to benefit from positive backward spillovers while local clients are negatively affected by forward spillovers. Using several measure of absorptive capacity like human capital or R&D does not change our results. On the other hand, a large technological gap favors the capture of technological spillovers. Labor mobility is the only significant horizontal spillovers. We also find that labor mobility changes direction according to different human capital levels. We finally show that local firms buying inputs from FDI suppliers are negatively affected by a second order vertical spillover.

Keywords: FDI; spillovers; technology transfer; total factor productivity; absorptive capacity; IDE; externalités; transfert de technologie; productivité totale des facteurs; capacité d'absorption (search for similar items in EconPapers)
Date: 2012-08-31
New Economics Papers: this item is included in nep-eff, nep-ino, nep-sbm and nep-tra
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00828022
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Citations: View citations in EconPapers (5)

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Working Paper: Horizontal and Vertical Technology Spillovers from FDI in Eastern Europe (2012)
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