Foreign Direct Investment and Productivity Spillovers in Swedish Manufacturing

Patrik Karpaty and Lars Lundberg ()
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Lars Lundberg: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden

No 194, Working Paper Series from Trade Union Institute for Economic Research

Abstract: Based on a panel of data for Swedish manufacturing firms in 1990-2000, this paper finds strong evidence for the existence of positive spillover effects from inward FDI. The presence of foreign ownership in the same industry and region seems to enhance the total factor productivity of domestic firms. Moreover, the size of these FDI spillover effects seems to depend both on the nationality of the foreign MNF as well as on the absorptive capacity of the domestic firm, measured by its own R&D. It appears that this positive relationship between foreign presence and productivity cannot be explained as a consequence of reverse causality, i.e that FDI is attracted to highly productive regions and industries.

Keywords: Multinational firms; Productivity spillovers; Foreign direct investment (search for similar items in EconPapers)
JEL-codes: F23 O30 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2004-06-09
New Economics Papers: this item is included in nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Related works:
Working Paper: Foreign Direct Investment and Productivity spillovers in Swedish Manufacturing (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:fiefwp:0194

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