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Inward FDI and Productivity Performance in Canadian Industries: Does the Country of Origin Matter?

Author

Listed:
  • Eric C.Y. Ng

    (Industry Canada)

  • Malick Souare

    (Industry Canada)

Abstract

This paper investigates whether the productivity impact of inward FDI in Canada differs by country of origin. Using panel data on Canadian industries, we find that only FDI originating from the US has a significant positive impact on productivity growth in industries in which it operates. This could be the result of higher productivity of U.S.-owned firms, technological knowledge spillovers from the U.S, or a combination of the two effects. A further investigation also shows that foreign investment from the US generates positive productivity spillovers to Canadian-owned firms within industries.

Suggested Citation

  • Eric C.Y. Ng & Malick Souare, 2010. "Inward FDI and Productivity Performance in Canadian Industries: Does the Country of Origin Matter?," Transnational Corporations Review, Ottawa United Learning Academy, vol. 2(3), pages 72-90, September.
    • Handle: RePEc:oul:tncr09:v:2:y:2010:i:3:p:72-90
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    Cited by:

    1. Michael-John Almon & Jianmin Tang, 2011. "Industrial Structural Change and the Post-2000 Output and Productivity Growth Slowdown: A Canada-U.S. Comparison," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 44-81, Fall.

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