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Exporting, linkages and productivity spillovers from foreign direct investment

Author

Listed:
  • Sourafel Girma
  • Holger Görg
  • Mauro Pisu

Abstract

. In this paper we analyse productivity spillovers from foreign direct investment using firm‐level panel data for U.K. manufacturing industries from 1992 to 1999. We investigate spillovers through horizontal, backward, and forward linkages; distinguish spillovers from export‐oriented vs domestic‐market‐oriented FDI; and allow for differing effects, depending on domestic firms' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are very complex and that there are substantial differences in spillover benefits for domestic exporters and non‐exporters, and from different types of inward investment. Dans ce mémoire, on analyse les effets externes de productivité en provenance de l'investissement direct de l'étranger en utilisant des données de panel pour les industries manufacturières au Royaume Uni entre 1992 et 1999. On examine les effets externes dans leurs effets d'entraînement en amont, en aval et d'une manière horizontale, tout en distinguant les effets externes découlant des investissements étrangers destinés à produire pour l'exportation par opposition à une production pour le marché domestique. On note aussi les effets différents sur les entreprises domestiques selon l'intensité de leurs activités à l'exportation. Les résultats suggèrent que les mécanismes à travers lesquels se transmettent les effets de débordement sur les entreprises domestiques sont très complexes, qu'il y a des différences significatives dans ces effets pour les entreprises exportatrices et non exportatrices et selon le type d'investissement étranger.

Suggested Citation

  • Sourafel Girma & Holger Görg & Mauro Pisu, 2008. "Exporting, linkages and productivity spillovers from foreign direct investment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(1), pages 320-340, February.
    • Handle: RePEc:wly:canjec:v:41:y:2008:i:1:p:320-340
    DOI: 10.1111/j.1365-2966.2008.00465.x
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    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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