Cross sectoral FDI spillovers and their impact on manufacturing productivity

Orlic, Edvard, Hashi, Iraj and Hisarciklilar, Mehtap (2018) Cross sectoral FDI spillovers and their impact on manufacturing productivity. International Business Review, 27 (4). pp. 777-796. ISSN 09695931

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This paper explores the relationship between FDI spillovers and productivity in manufacturing firms in five European transition countries. The novelty of our approach lies in separating the impact of vertical linkages from services and manufacturing sectors. For this purpose, we rely on firm level data obtained from the Amadeus database and annual input-output tables. The results from a dynamic panel model reveal that local manufacturing firms benefit from the presence of foreign firms in upstream services, especially in the knowledge intensive services, and in downstream manufacturing sector while the effect of intra-industry spillovers and manufacturing forward linkages are negative. The firms’ productivity is also influenced positively by human capital and intangible assets. The results for intra-industry spillovers suggest attenuating effects for higher levels of firms’ absorptive capacity in some countries.

Item Type: Article
Keywords: FDI, services, vertical linkages, productivity spillovers
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences
Depositing User: Mehtap Hisarciklilar
Date Deposited: 04 Oct 2018 11:47
Last Modified: 04 Oct 2018 11:47

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