Productivity Spillovers from FDI in the Uruguayan Manufacturing Sector

Ari Kokko, Ruben Tansini and Mario Zejan
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Mario Zejan: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

No 2, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a positive and statistically significant spillover effect only in a sub-sample of locally-owned plants with moderate technology gaps vis-a-vis foreign firms. Our interpretation is that there are firm-specific differences in the ability to absorb spillovers, and that these may explain some of the contradictory findings of earlier spillover studies.

Keywords: Foreign direct investment; multinational corporations; productivity; spillovers (search for similar items in EconPapers)
JEL-codes: F23 O49 (search for similar items in EconPapers)
Pages: 12 pages
Date: 1994-01
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Citations: View citations in EconPapers (2)

Published in Journal of Development Studies, 1996, pages 602-611

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Working Paper: Productivity spillovers from FDI in the Uruguayan manufacturing sector (1994)
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