IDEAS home Printed from https://ideas.repec.org/a/spr/epolin/v50y2023i4d10.1007_s40812-023-00265-1.html
   My bibliography  Save this article

Foreign investment and domestic productivity in EU11 countries

Author

Listed:
  • Amin Sokhanvar

    (Ural Federal University)

Abstract

This study analyzes the heterogeneous effect of FDI spillovers on the productivity of local firms in Central and Eastern European economies. Two direct and indirect transmission channels of knowledge spillovers are empirically investigated. The study focuses on the role of high-growth firms that are assumed to have a higher absorptive capacity. The fixed-effects model including country and sector fixed effects is applied to investigate a cross-section of 4943 firms. Our empirical analysis shows that first, larger firms with external market linkages are more productive. Second, high-growth enterprises are powerful engines of job creation, however, they do not outperform other firms in terms of capacity in absorbing FDI spillovers and do not have higher productivity. It highlights the necessity of rethinking public policy priorities to support firm growth. Policies to maximize the gains from FDI spillovers are discussed.

Suggested Citation

  • Amin Sokhanvar, 2023. "Foreign investment and domestic productivity in EU11 countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(4), pages 877-905, December.
    • Handle: RePEc:spr:epolin:v:50:y:2023:i:4:d:10.1007_s40812-023-00265-1
    DOI: 10.1007/s40812-023-00265-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40812-023-00265-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40812-023-00265-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Foreign direct investment; FDI spillovers; Productivity; Contractual linkages; Absorptive capacity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:epolin:v:50:y:2023:i:4:d:10.1007_s40812-023-00265-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.