The Role of Exporting and Linkages for Productivity Spillovers from FDI
University of Nottingham Research Paper No. 2004/30
32 Pages Posted: 2 Aug 2005
Date Written: July 2005
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.
Keywords: Foreign Direct Investment, productivity spillovers, exporting, absorptive capacity, competition
JEL Classification: F23
Suggested Citation: Suggested Citation