The DOI matches its Crossref record; 60 of the 60 references it cites were found in a registry or an index.
Spillovers from foreign direct investment: Within or between industries?
Abstract
This paper contributes an estimation framework to measure both technological and linkage externalities from foreign direct investment (FDI). Empirical research dealt mainly with intra-industry spillovers from FDI with restrictive treatment of inter-industry effects until recently. However, as optimal organization of the multinational corporation (MNC) involves minimization of profit losses due to leakage of technical information to competitors, host country firms within the MNC´s sector experience limited productivity gains ensuing FDI. Host-country producers in other sectors may benefit. For example, MNCs transfer knowledge to local downstream clients, or outsource to local upstream suppliers. Hence, FDI substitutes within-sector domestic investment but complements it across sectors. The net impact on aggregate capital formation by host-country producers hinges on the interaction between linkages and spillovers. Estimations based on the Colombian Manufacturing Census yield the sectoral pattern of FDI spillovers displaying knowledge propagation between but not within industries. The findings reveal outsourcing relationships of MNCs with local upstream suppliers as a channel of diffusion.
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Cites
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Cited by
Lu, Y., Tao, Z., & Zhu, L. (2017) · Journal of International Economics · doi:10.1016/j.jinteco.2017.01.006 · Cited by 566
Does services liberalization benefit manufacturing firms?
Arnold, J. M., Javorcik, B. S., & Mattoo, A. (2011) · Journal of International Economics · doi:10.1016/j.jinteco.2011.05.002 · Cited by 367
Collecting the Pieces of the FDI Knowledge Spillovers Puzzle
Smeets, R. (2008) · The World Bank Research Observer · doi:10.1093/wbro/lkn003 · Cited by 317
Foreign direct investment in services and manufacturing productivity: Evidence for Chile
Fernandes, A. M., & Paunov, C. (2012) · Journal of Development Economics · doi:10.1016/j.jdeveco.2011.02.004 · Cited by 269
Foreign direct investment inflows and the industrialization of African countries
Gui-Diby, S. L., & Renard, M.-F. (2015) · World Development · doi:10.1016/j.worlddev.2015.04.005 · Cited by 211
Metadata
- Authors
- Kugler, M.
- Venue
- Journal of Development Economics
- Publisher
- Elsevier BV
- Published
- 2006-08
- Volume
- 80
- Issue
- 2
- Pages
- 444-477
- ISSN
- 0304-3878 (ISSN-L)
- OpenAlex
- W2077025218
- Cited by
- 443
- References
- 60
- FWCI
- 74.75
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
