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Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages

The American economic review, 2004-06, Vol.94 (3), p.605-627 [Peer Reviewed Journal]

Copyright 2004 American Economic Association ;Copyright American Economic Association Jun 2004 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/0002828041464605 ;CODEN: AENRAA

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Title:
Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages
Author: Javorcik, Beata Smarzynska
Subjects: Business studies ; Capital investments ; Coefficients ; Economic theory ; Foreign direct investment ; Foreign direct investments ; Foreign investment ; Foreign investments ; Foreign ownership ; Industrial productivity ; Industrial sectors ; International investment ; Multinational corporations ; Productivity ; Regression coefficients ; Spillovers ; Stock shares ; Studies ; Technology transfer
Is Part Of: The American economic review, 2004-06, Vol.94 (3), p.605-627
Description: Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The analysis, based on firm-level data from Lithuania, produces evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local suppliers in upstream sectors. The data indicate that spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/0002828041464605
CODEN: AENRAA
Source: ProQuest Central

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Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages

Copyright 2004 American Economic Association ;Copyright American Economic Association Jun 2004 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/0002828041464605 ;CODEN: AENRAA

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