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Foreign Direct Investment and Productivity spillovers in Swedish Manufacturing

Patrik Karpaty and Lars Lundberg
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Lars Lundberg: FIEF, Postal: Wallingatan 38, SE-111 24 Stockholm, Sweden,, http://www.fief.se

No 2004:2, Working Papers from Örebro University, School of Business

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: 53 pages
Date: 2004-09-29
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Citations: View citations in EconPapers (32)

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