Exporting, linkages and productivity spillovers from foreign direct investment

Authors: Girma, Sourafel¹; Görg, Holger²; Pisu, Mauro³

Source: Canadian Journal of Economics, Volume 41, Number 1, February/février 2008 , pp. 320-340(21)

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Abstract:

Abstract.

In this paper we analyse productivity spillovers from foreign direct investment using firm-level panel data for U.K. manufacturing industries from 1992 to 1999. We investigate spillovers through horizontal, backward, and forward linkages; distinguish spillovers from export-oriented vs domestic-market-oriented FDI; and allow for differing effects, depending on domestic firms' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are very complex and that there are substantial differences in spillover benefits for domestic exporters and non-exporters, and from different types of inward investment.

Keywords: F1; F2

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1365-2966.2008.00465.x

Affiliations: 1: Nottingham University Business School, University of Nottingham 2: Institut für Weltwirtschaft and Christian-Albrechts-Universität, Kiel 3: National Bank of Belgium

Publication date: 2008-02-01