Domestic plant productivity and incremental spillovers from foreign direct investment

Journal of International Business Studies

Volumn 40, Issue 7, 2009, Pages 1131-1148

  Altomonte, Carlo ^a   Pennings, Enrico ^b  

^a BOCCONI UNIVERSITY   (Italy)

^b ERASMUS UNIVERSITY ROTTERDAM   (Netherlands)

Author keywords

Multinational firms; Productivity; Transition economies

Indexed keywords

EID: 69949165870     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2008.99     Document Type: Article

References (39)

1. Aitken, B. J., & Harrison, A. E. 1999. Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. American Economic Review, 89(3): 605-618.
2. Aitken, B. J., Harrison, A. E., & Lipsey, R. 1996. Wages and foreign ownership: A comparative study of Mexico, Venezuela and the United States. Journal of International Economics, 40(3-4): 345-371.
3. Alcacer, J., & Chung, W. 2007. Location strategies and knowledge spillovers. Management Science, 53(5): 760-776.
4. Arnold, J., & Smarzynska Javorcik, B. 2005. Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia. CEPR Discussion Paper No. 5065, London.
5. Baltagi, B. H. 2001. Econometric analysis of panel data. New York: Wiley.
6. Belderbos, R., Lykogianni, E., & Veugelers, R. 2005. Strategic R&D location by multinational firms: Spillovers, technology sourcing and competition. CEPR Discussion Paper No. 5060, London.
7. Bhargava, A., Franzini, L., & Narendranathan, W. 1982. Serial correlation and the fixed effects model. The Review of Economic Studies, 49(4): 533-549.
8. 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.
9. Buckley, J., Clegg, J., & Wang, C. 2002. The impact of inward FDI on the performance of Chinese manufacturing firms. Journal of International Business Studies, 33(4): 637-655.
10. Buckley, J., Clegg, J., & Wang, C. 2007. Is the relationship between inward FDI and spillover effects linear? An empirical examination of the case of China. Journal of International Business Studies, 38(3): 447-459.
11. Cantwell, J. A., & Santangelo, G. D. 2002. The new geography of corporate research in information and communications technology (ICT). Journal of Evolutionary Economics, 12(1-2): 163-197.
12. Capar, N., & Kotabe, M. 2003. The relationship between international diversification and performance in service firms. Journal of International Business Studies, 34(4): 345-355.
13. Castellani, D., & Zanfei, A. 2006. Multinational firms, innovation and productivity. Cheltenham: Edward Elgar.
14. Caves, R. E. 1971. International corporations: The industrial economics of foreign investment. Economica, 38(1): 1-27.
15. Damijan, J., Majcen, B., Knell, M., & Rojec, M. 2003. The role of FDI, R&D accumulation and trade in transferring technology to transition countries: Evidence from firm panel data for eight transition countries. Economic Systems, 27(2): 189-204.
16. Davies, S., & Lyons, B. 1996. Industrial organization in the European Union. London: Clarendon Press.
17. De Loecker, J. 2007. Product differentiation, multi-product firms and estimating the impact of trade liberalization on productivity. NBER Working Paper No. 13155, Washington, DC.
18. Djankov, S., & Hoekman, B. 2000. Foreign investment and productivity growth in Czech enterprises. World Bank Economic Review, 14(1): 49-64.
19. Driffield, N., & Love, J. H. 2007. Linking FDI motivation and host economy productivity effects: Conceptual and empirical analysis. Journal of International Business Studies, 38(3): 460-473.
20. Eslava, M., Haltiwanger, J., Kugler, A., & Kugler, M. 2004. The effects of structural reforms on productivity and profitability enhancing reallocation: Evidence from Colombia. Journal of Development Economics, 75(2): 333-371.
21. Görg, H., & Greenaway, D. 2004. Much ado about nothing? Do domestic firms really benefit from foreign investment? World Bank Research Observer, 19(2): 171-197.
22. Greene, W. 2003. Econometric analysis. Englewood Cliffs, NJ: Prentice-Hall.
23. Griffith, R., Redding, S., & Simpson, H. 2002. Productivity convergence and foreign ownership at the establishment level. CEPR Discussion Paper No. 3765, London.
24. Griliches, Z., & Mairesse, J. 1995. Production functions: The search for identification. NBER Working Paper No. 5067, Washington, DC.
25. Haskel, J., Pereira, S., & Slaughter, M. J. 2007. Does inward foreign direct investment boost the productivity of domestic firms? Review of Economics and Statistics, 89(2): 482-496.
26. Katayama, H., Lu, S., & Tybout, J. R. 2003. Why plant-level productivity studies are often misleading, and an alternative approach to inference. NBER Working Paper No. 9617, Washington DC.
27. Klette, T. J., & Griliches, Z. 1996. The inconsistency of common scale estimators when output prices are unobserved and endogenous. Journal of Applied Econometrics, 11(4): 343-361.
28. Konings, J. 2001. The effects of foreign direct investment on domestic firms: Evidence from firm level panel data in emerging economies. Economics of Transition, 9(3): 619-633.
29. Levinsohn, J., & Petrin, A. 2003. Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70(2): 317-342.
30. 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): 407-425.
31. Liu, Z. 2008. Foreign direct investment and technology spillovers: Theory and evidence. Journal of Development Economics, 85(1-2): 176-193.
32. Markusen, J., & Venables, A. 1999. Foreign direct investment as a catalyst for industrial development. European Economic Review, 43(2): 335-356.
33. Olley, S., & Pakes, A. 1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64(6): 1263-1298.
34. Sinani, E., & Meyer, K. E. 2004. Spillovers of technology transfer from FDI: The case of Estonia. Journal of Comparative Economics, 32(3): 445-466.
35. Smarzynska Javorcik, B. 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.
36. Smarzynska Javorcik, B., & Spatareanu, M. 2008. To share or not to share: Does local participation matter for spillovers from foreign direct investment? Journal of Development Economics, 85(1-2): 194-217.
37. Syverson, C. 2004. Market structure and productivity: A concrete example. Journal of Political Economy, 112(6): 1181-1222.
38. Vahter, P., & Masso, J. 2007. Home versus host country effects of FDI: Searching for new evidence of productivity spillovers. Applied Economics Quarterly, 53(2): 165-196.
39. Van Biesebroeck, J. 2005. Exporting raises productivity in sub- Saharan African manufacturing firms. Journal of International Economics, 67(2): 373-391.