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Exporting, linkages and productivity spillovers from foreign direct investment

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  • Girma, Sourafel
  • Görg, Holger
  • Pisu, Mauro

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.

Suggested Citation

  • Girma, Sourafel & Görg, Holger & Pisu, Mauro, 2008. "Exporting, linkages and productivity spillovers from foreign direct investment," Open Access Publications from Kiel Institute for the World Economy 4265, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:4265
    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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