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Mutual Productivity Spillovers in Slovakia: Absorptive Capacity, the Technology Gap, and Nonlinear Effects

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  • Elena Jayne Jacobs
  • Peter Zámborský
  • Erwann Sbai

Abstract

This article analyzes traditional productivity spillovers from foreign to local firms and reverse productivity spillovers from local to foreign firms. It argues that the extent of mutual productivity spillovers depends on absorptive capacity and the technology gap. The authors’ hypotheses were tested with panel data on Slovak firms for the period 2003–12. Traditional productivity spillovers through output were found to be positive, but the spillover effects through capital were mostly negative. The effect of the technology gap on productivity spillovers was conducive. Nonlinear effects were found in services and high-tech industries. Reverse productivity spillovers through capital were positive in the manufacturing industries.

Suggested Citation

  • Elena Jayne Jacobs & Peter Zámborský & Erwann Sbai, 2017. "Mutual Productivity Spillovers in Slovakia: Absorptive Capacity, the Technology Gap, and Nonlinear Effects," Eastern European Economics, Taylor & Francis Journals, vol. 55(4), pages 291-323, July.
    • Handle: RePEc:mes:eaeuec:v:55:y:2017:i:4:p:291-323
    DOI: 10.1080/00128775.2017.1291306
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    Cited by:

    1. Jan Drahokoupil & Brian Fabo, 2022. "The limits of foreign-led growth: Demand for skills by foreign and domestic firms," Review of International Political Economy, Taylor & Francis Journals, vol. 29(1), pages 152-174, January.
    2. Kubičková Viera & Krošláková Monika & Michálková Anna & Benešová Dana, 2018. "Gazelles in services: what are the specifics of their existence in Slovakia?," Management & Marketing, Sciendo, vol. 13(2), pages 929-945, June.
    3. Hien T. N. Huynh & Phuong V. Nguyen & Hoa D. X. Trieu & Khoa T. Tran, 2021. "Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 59-75, January.
    4. Bhandari, Krishna Raj & Zámborský, Peter & Ranta, Mikko & Salo, Jari, 2023. "Digitalization, internationalization, and firm performance: A resource-orchestration perspective on new OLI advantages," International Business Review, Elsevier, vol. 32(4).
    5. Vasvári, Tamás & Hegedűs, Dániel, 2020. "Hazai vállalatok az értékláncban. Egy feldolgozóipari vállalat beszállítói kapcsolatainak elemzése [Domestic players in the value chain: supplier relationships of a manufacturing company]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1245-1270.
    6. Jan Drahokoupil & Brian Fabo, 2019. "The limits of foreign-led growth: Demand for digital skills by foreign and domestic firms in Slovakia," Working and Discussion Papers WP 7/2019, Research Department, National Bank of Slovakia.

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