Productivity spillovers from foreign direct investment in Poland

2008

2006

This paper provides both empirical and theoretical evidence of the presence of positive horizontal spillover associated with foreign direct investment (FDI). Based on a newly collected firm level data of Bangladesh garment sector, this paper shows that not only are firms with foreign equity more productive, but also that the productivity improvement of these foreign firms raises the productivity of domestic firms in the same industry. This horizontal spillover effect of FDI is further explained in a theoretical model with heterogenous firms. In this model, the productivity of domestic firms depends their learning ability and the productivity of the FDI firms in the industry. In equilibrium, the productivity of FDI firms affects the productivity of domestic firms through improving the entire productivity distribution of domestic firms, and through weeding out inefficient domestic firms as market competition is toughened. Using the firm survey data, a conditional Weibull distribution ...

2008

We analyze productivity spillovers from MNC subsidiaries to domestic Romanian companies, both within (horizontal spillovers) and across industries (vertical spillovers). We separate labor market spillovers from other horizontal spillovers and define the supply-backward linkage spillover that runs from foreign investors over domestic suppliers to local users of domestic inputs. In our panel of Romanian firms, labor market effects differ from other horizontal effects, vertical spillovers dominate horizontal spillovers and the newly defined supply-backward spillover is economically and statistically significant. The spillovers studied raise total factor productivity between 20% and 50% in the period 1998-2001, depending on the firm’s initial level of technology.

2019

This thesis attempts to provide a better understanding of the role of inward foreign direct investment (FDI) and the productivity relationship by providing both a theoretical and empirical contribution to the existing literature. Chapter 2 studies how inward FDI can affect economic growth. We extend a leader-follower endogenous growth model and highlight theoretically the endogeneity of FDI in a regression on growth, where FDI acts as a bridge linking technology transfer to firms' adaptation activities, which enable developing countries to catch-up with developed countries. We empirically test the main predictions of our theoretical model and we find positive and statistically significant effects of FDI on the relative level of GDP per capita. The subsequent chapter investigates whether current measures of vertical linkages capture the spillover effects from multinational firms to domestic firms. We construct measures of vertical linkages at the firm-level to include the differe...

RESEARCH PAPER SERIES- …, 2002

Aston Business School Research Institute is the administrative centre for all research activities at Aston Business School.

2015

Furthermore, I endeavored to maintain my study as adherent as possible to the "Guidelines for Good Scientific Practice" (Leitlinien guter wissenschaftlicher Praxis) cited under §9 of the Promotionsordnung des Promotionsstudiengangs "International Development Studies", to the best of my ability. Errors and omissions in this document remain my personal responsibility.

2018

While many papers focus on entry mode choices (exporting, licensing, FDI) by multinational firms into a host country, most papers focus on the multinationals themselves, or treat the multinational entry decision as exogenous and consider the effects on the productivity of domestic firms. These latter effects are limited to competition and spillover effects that are effectively exogenous to a domestic firms decision making. Here we take a more general approach involving interdependent decisions by a domestic and multinational firm. Exogenous characteristics are base productivity/cost parameters of the two firms. The multinational’s endogenous decision is its mode choice, and the domestic firm’s endogenous variable is an investment decision that determines its ex-post productivity. The paper begins with an empirical exercise using Chilean plant-level data which motivates and informs the theory to follow. We show that plants that are foreign owned have higher productivity, sales and va...

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2013