Do all firms benefit equally from downstream FDI the moderating effect of local suppliers capabilities on productivity gains

Journal of International Business Studies

Volumn 40, Issue 7, 2009, Pages 1095-1112

  Blalock, Garrick ^a   Simon, Daniel H ^a  

^a Department of Obstetrics Gynecology   (United States)

Author keywords

Foreign direct investment; Indonesia; Productivity

Indexed keywords

EID: 69949115161     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2009.21     Document Type: Article

References (27)

1. Aitken, B., & Harrison, A. 1999. Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. American Economic Review, 89(3): 605-618.
2. Blalock, G. 2002. Technology adoption from foreign direct investment and exporting: Evidence from Indonesian manufacturing, PhD thesis, University of California, Berkeley.
3. Blalock, G., & Gertler, P. 2008. Welfare gains from foreign direct investment through technology transfer to local suppliers. Journal of International Economics, 74(2): 402-421.
4. Blalock, G., & Gertler, P. 2009. How firm capabilities affect who benefits from foreign technology. Journal of Development Economics, forthcoming. doi:10.1016/j.jdeveco.2008.11.011.
5. Blomstrom, M., & Wolff, E. 1994. Multinational corporations and productivity convergence in Mexico. In W. Baumol, R. Nelson, & E. Wolff (Eds), Convergence of productivity: Crossnational studies and historical evidence: 263-284. New York: Oxford University Press.
6. Caves R. Multinational firms, competition, and productivity in host-country markets. 1974, 41, 162.
7. Chung, W., Mitchell, W., & Yeung, B. 2003. Foreign direct investment and host country productivity: The American automotive component industry in the 1980s. Journal of International Business Studies, 34(2): 199-218.
8. Cohen, W., & Levinthal, D. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1): 128-152.
9. Feinberg, S., & Majumdar, S. 2001. Technology spillovers from foreign direct investment in the Indian pharmaceutical industry. Journal of International Business Studies, 32(3): 421-438. (Pubitemid 33341625)
10. Globerman, S. 1979. Foreign direct investment and spillover efficiency benefits in Canadian manufacturing industries. Canadian Journal of Economics, 12(1): 42-56.
11. Haddad, M., & Harrison, A. 1993. Are there positive spillovers from direct foreign investment? Evidence from panel data for Morocco. Journal of Development Economics, 42(1): 51-74.
12. Haskel, J., Pereira, S., & Slaughter, M. 2002. Does inward foreign direct investment boost the productivity of domestic firms? Discussion Paper 8433, National Bureau of Economic Research.
13. Hoxby, C. 2005. Competition among public schools: A reply to Rothstein (2004), Working Paper 11216, National Bureau of Economic Research.
14. Jabbour, L., & Mucchielli, J. L. 2007. Technology transferthrough vertical linkages: The case of the Spanish manufacturing industry. Journal of Applied Economics, 10(1): 115-136.
15. Javorcik, B. S. 2004. Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. American Economic Review, 94(3): 605-627.
16. Kinoshita, Y. 2000. R&D and technology spillovers via FDI: Innovation and absorptive capacity, Working Paper No. 349, William Davidson Institute.
17. Kokko, A. 1994. Technology, market characteristics, and spillovers. Journal of Development Economics, 43(2): 279-293.
18. Lane, P., Salk, J., & Lyles, M. 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal, 22(12): 1139-1161.
19. Levinsohn, J., & Petrin, A. 2003. Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70(2): 317-341.
20. Liu, X., Siler, P., Wang, C., & Wei, Y. 2000. Productivity spillovers from foreign direct investment: Evidence from UK industry level panel data. Journal of International Business Studies, 31(3): 407-426.
21. Moulton, B. R. 1990. An illustration of a pitfall in estimating the effects of aggregate variables on micro units. Review of Economics and Statistics, 72(2): 334-338.
22. Pack, H., & Saggi, K. 2001. Vertical technology transfer via international outsourcing. Journal of Development Economics, 65(2): 389-415.
23. Rodrik, D. 1999. The new global economy and developing countries: Making openness work, Policy Essay 24, Overseas Development Council, Washington, DC: Johns Hopkins University Press.
24. Szulanski, G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17(Winter special issue): 27-43.
25. Thornton, R. J., & Innes, J. T. 1989. Interpreting semilogarithmic regression coefficients in labor research. Journal of Labor Research, 10(4): 443-447.
26. World Bank. 1993. Foreign direct investment: Benefits beyond insurance. Washington, DC: Development Brief 14, Development Economics Vice-Presidency.
27. Zahra, S., & George, G. 2002. Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2): 185-203.