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When does FDI have positive spillovers? Evidence from 17 transition market economies

Published on Dec 1, 2014in Journal of Comparative Economics1.71
· DOI :10.2139/ssrn.2369581
Yuriy Gorodnichenko33
Estimated H-index: 33
(University of California, Berkeley),
Jan Svejnar34
Estimated H-index: 34
(Columbia University),
Katherine Terrell31
Estimated H-index: 31
(UM: University of Michigan)
Abstract
We use rich firm-level data and national input-output tables from 17 countries over the 2002-2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). We document that backward linkages have a consistently positive effect on productivity of domestic firms while horizontal and forward linkages show no consistent effect. We also examine how the strength of spillovers varies by sector, FDI source, business environment (corruption, red tape, level of development), firm's distance to the technological frontier, education of workers, and other firm- and country-specific characteristics.
  • References (48)
  • Citations (34)
References48
Newest
#1Christian Fons-Rosen (UPF: Pompeu Fabra University)H-Index: 4
#2Sebnem Kalemli-Ozcan (NBER: National Bureau of Economic Research)H-Index: 31
Last.Vadym Volosovych (Erasmus Research Institute of Management)H-Index: 11
view all 5 authors...
#1Klara Sabirianova Peter (UNC: University of North Carolina at Chapel Hill)H-Index: 13
#2Jan Svejnar (Columbia University)H-Index: 34
Last.Katherine Terrell (UM: University of Michigan)H-Index: 31
view all 3 authors...
#1Filip Abraham (Catholic University of Leuven)H-Index: 12
#2Jozef Konings (Catholic University of Leuven)H-Index: 34
Last.Veerle Slootmaekers (Catholic University of Leuven)H-Index: 2
view all 3 authors...
#1Yuriy Gorodnichenko (University of California, Berkeley)H-Index: 33
#2Jan SvejnarH-Index: 34
Last.Katherine Terrell (UM: University of Michigan)H-Index: 31
view all 3 authors...
#1Sourafel Girma (University of Nottingham)H-Index: 41
#2Holger Görg (CAU: University of Kiel)H-Index: 51
Last.Mauro Pisu (National Bank of Belgium)H-Index: 16
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Cited By34
Newest
#1Yixuan Dong (SJTU: Shanghai Jiao Tong University)
#2Shuai Shao (SUFE: Shanghai University of Finance and Economics)H-Index: 19
Last.Yan Zhang (SUFE: Shanghai University of Finance and Economics)
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#1Evguenia Bessonova (HSE: National Research University – Higher School of Economics)H-Index: 1
#2Ksenia Gonchar (HSE: National Research University – Higher School of Economics)H-Index: 4
#1Qing Liu (RUC: Renmin University of China)
#2Ruosi Lu (UIBE: Beijing Institute of Foreign Trade)H-Index: 3
Last.Chao Yang (UIBE: Beijing Institute of Foreign Trade)
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#1Yu Zhou (SU: Southern University and A&M College)H-Index: 1
#2Jingjing Jiang (HIT: Harbin Institute of Technology)H-Index: 9
Last.Bojun Hou (USTC: University of Science and Technology of China)H-Index: 1
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#1Masayoshi Ike (Swinburne University of Technology)H-Index: 2
#2Jerome D. Donovan (Swinburne University of Technology)H-Index: 6
Last.Eryadi K. Masli (Swinburne University of Technology)H-Index: 3
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#1Ahmad Arslan (University of Oulu)H-Index: 1
#2Jorma Larimo (University of Vaasa)H-Index: 15
Last.Desislava Dikova (WU: Vienna University of Economics and Business)H-Index: 10
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#1Duleeka Sandamali Gunarathne (University of Moratuwa)H-Index: 1
#2Isuru A. Udugama (DTU: Technical University of Denmark)H-Index: 4
Last.Mahinsasa Narayana (University of Moratuwa)H-Index: 6
view all 6 authors...
View next paperABSTRACT When Does FDI Have Positive Spillovers? Evidence from 17 Transition Market Economies *