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Productivity spillovers through vertical linkages: Evidence from 17 OECD countries

Jürgen Bitzer (), Ingo Geishecker and Holger Görg ()

Discussion Papers from University of Nottingham, GEP

Abstract: This paper extends the literature on productivity spillovers from inward FDI. We use comparable industry level data for 17 OECD countries and investigate the importance of horizontal and vertical spillovers, and differences between CEEC and other OECD countries. Results show that there is evidence for spillovers through vertical backward linkages between multinationals and domestic firms for all countries, but that this effect is much higher for CEEC than other OECD countries. We also find some evidence for positive effects from horizontal FDI, but these do not differ between the two country groups.

Keywords: Foreign direct investment; productivity; vertical linkages; spillovers (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:07/26

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