Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Journal of International Economics

Volumn 85, Issue 2, 2011, Pages 234-244

  Havranek, Tomas ^a,b   Irsova, Zuzana ^a  

^a CZECH NATIONAL BANK   (Czech Republic)

^b CHARLES UNIVERSITY   (Czech Republic)

Author keywords

Foreign direct investment; Meta analysis; Productivity; Publication selection bias; Spillovers

Indexed keywords

ESTIMATION METHOD; FOREIGN DIRECT INVESTMENT; INTERNATIONAL TRADE; INVESTMENT LOCATION; META-ANALYSIS; QUANTITATIVE ANALYSIS; SPILLOVER EFFECT;

EID: 82655181856     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2011.07.004     Document Type: Article

References (41)

1. Alfaro L., Chanda A., Kalemli-Ozcan S., Sayek S. Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics 2010, 91(2):242-256.
2. Ashenfelter O., Greenstone M. Estimating the value of a statistical life: the importance of omitted variables and publication bias. The American Economic Review 2004, 94(2):454-460.
3. Ashenfelter O., Harmon C., Oosterbeek H. A review of estimates of the schooling/earnings relationship, with tests for publication bias. Labour Economics 1999, 6(4):453-470.
4. Bitzer J., Geishecker I., Görg H. Productivity spillovers through vertical linkages: evidence from 17 OECD countries. Economics Letters 2008, 99(2):328-331.
5. Blalock G., Gertler P.J. Welfare gains from Foreign Direct Investment through technology transfer to local suppliers. Journal of International Economics 2008, 74(2):402-421.
6. Card D., Krueger A.B. Time-series minimum-wage studies: a meta-analysis. The American Economic Review 1995, 85(2):238-243.
7. Card D., Kluve J., Weber A. Active labour market policy evaluations: a meta-analysis. The Economic Journal 2010, 120(548):F452-F477.
8. Cipollina M., Salvatici L. Reciprocal trade agreements in gravity models: a meta-analysis. Review of International Economics 2010, 18(1):63-80.
9. Crespo N., Fontoura M.P. Determinant factors of FDI spillovers-what do we really know?. World Development 2007, 35(3):410-425.
10. DeLong J.B., Lang K. Are all economic hypotheses false?. Journal of Political Economy 1992, 100(6):1257-1272.
11. Disdier A.-C., Head K. The puzzling persistence of the distance effect on bilateral trade. The Review of Economics and Statistics 2008, 90(1):37-48.
12. Doucouliagos C., Laroche P. Unions and profits: a meta-regression analysis. Industrial Relations 2009, 48(1):146-184.
13. Doucouliagos H., Stanley T. Theory competition and selectivity: are all economic facts greatly exaggerated?. Economics Series Working Paper 06 2008, Deakin University.
14. Doucouliagos H., Stanley T.D. Publication selection bias in minimum-wage research? A meta-regression analysis. British Journal of Industrial Relations 2009, 47(2):406-428.
15. Egger M., Smith G.D., Scheider M., Minder C. Bias in meta-analysis detected by a simple, graphical test. British Medical Journal 1997, 315(7109):629-634.
16. Girma S., Wakelin K. Local productivity spillovers from foreign direct investment in the U.K. electronics industry. Regional Science and Urban Economics 2007, 37(3):399-412.
17. Görg H., Greenaway D. Much ado about nothing? Do domestic firms really benefit from foreign direct investment?. World Bank Research Observer 2004, 19(2):171-197.
18. Görg H., Strobl E. Multinational companies and productivity spillovers: a meta-analysis. The Economic Journal 2001, 111(475):F723-F739.
19. Hadi A.S. A modification of a method for the detection of outliers in multivariate samples. Journal of the Royal Statistical Society 1994, 56:393-396. Series (B).
20. Harrison A.E., Love I., McMillan M.S. Global capital flows and financing constraints. Journal of Development Economics 2004, 75(1):269-301.
21. Havranek T. Rose effect and the Euro: is the magic gone?. Review of World Economics 2010, 146(2):241-261.
22. Havranek T., Irsova Z. Which foreigners are worth wooing? A meta-analysis of vertical spillovers from FDI. Working Papers 2010/03 2010, Czech National Bank, Research Department.
23. Javorcik B.S. Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. The American Economic Review 2004, 94(3):605-627.
24. Javorcik B.S. The composition of foreign direct investment and protection of intellectual property rights: evidence from transition economies. European Economic Review 2004, 48(1):39-62.
25. Javorcik B.S., Spatareanu M. To share or not to share: does local participation matter for spillovers from foreign direct investment?. Journal of Development Economics 2008, 85(1-2):194-217.
26. Javorcik B.S., Spatareanu M. Liquidity constraints and firms' linkages with multinationals. World Bank Economic Review 2009, 23(2):323-346.
27. Javorcik B.S., Spatareanu M. Does it matter where you come from? Vertical spillovers from foreign direct investment and the origin of investors. Journal of Development Economics 2011, 96(1):126-138.
28. Keller W. International trade, foreign direct investment, and technology spillovers. NBER Working Papers 15442 2009, National Bureau of Economic Research.
29. Kugler M. Spillovers from foreign direct investment: within or between industries?. Journal of Development Economics 2006, 80(2):444-477.
30. Meyer K.E., Sinani E. When and where does foreign direct investment generate positive spillovers? A meta-analysis. Journal of International Business Studies 2009, 40(7):1075-1094.
31. Nelson J., Kennedy P. The use (and abuse) of meta-analysis in environmental and natural resource economics: an assessment. Environmental and Resource Economics 2009, 42(3):345-377.
32. Rabe-Hesketh S., Skrondal A. Multilevel and longitudinal modeling using stata 2008, Stata Press, College Station, TX.
33. Rodriguez-Clare A. Multinationals, linkages, and economic development. The American Economic Review 1996, 86(4):852-873.
34. Rosenthal R. The 'file drawer problem' and tolerance for null results. Psychological Bulletin 1979, 86:638-641.
35. Smeets R. Collecting the pieces of the FDI knowledge spillovers puzzle. World Bank Research Observer 2008, 23(2):107-138.
36. Smith V.K., Huang J.-C. Can markets value air quality? A meta-analysis of hedonic property value models. Journal of Political Economy 1995, 103(1):209-227.
37. Stanley T.D. Wheat from Chaff: meta-analysis as quantitative literature review. Journal of Economic Perspectives 2001, 15(3):131-150.
38. Stanley T.D. Beyond Publication Bias. Journal of Economic Surveys 2005, 19(3):309-345.
39. Stanley T.D. Meta-regression methods for detecting and estimating empirical effects in the presence of publication selection. Oxford Bulletin of Economics and Statistics 2008, 70(1):103-127.
40. Stanley T., Doucouliagos H. Picture this: a simple graph that reveals much ado about research. Journal of Economic Surveys 2010, 24(1):170-191.
41. Stanley T.D., Doucouliagos H., Jarrell S.B. Meta-regression analysis as the socio-economics of economics research. The Journal of Socio-Economics 2008, 37(1):276-292.