Exporting, Linkages and Productivity Spillovers from Foreign Direct Investment

Girma, Sourafel; Görg, Holger; Pisu, Mauro

Purchase - $8.00 CEPR Subscribers Download

Add Paper to My Library

Exporting, Linkages and Productivity Spillovers from Foreign Direct Investment

CEPR Discussion Paper No. DP6383

32 Pages Posted: 29 May 2008

See all articles by Sourafel Girma

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Mauro Pisu

Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium; OECD

There are 2 versions of this paper

Date Written: July 2007

Abstract

In this paper we analyse productivity spillovers from foreign direct investment using firm level panel data UK 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.

Keywords: Absorptive capacity, exporting, foreign direct investment, linkages, productivity spillovers

JEL Classification: F1, F2

Suggested Citation: Suggested Citation

Girma, Sourafel and Gorg, Holger and Pisu, Mauro, Exporting, Linkages and Productivity Spillovers from Foreign Direct Investment (July 2007). CEPR Discussion Paper No. DP6383, Available at SSRN: https://ssrn.com/abstract=1137064