Location of Repository

FDI and the Consequences: Towards more complete capture of spillover effects

By Ken Schoors and Bruno Merlevede

Abstract

We analyze productivity spillovers of FDI on domestic companies, both within and across industries. In the identification of intraindustry spillovers, we separate out labor market effects from other effects. Interindustry spillovers are identified through upstream, downstream, and supply-backward linkage effects. Dynamic input output tables are used to construct the linkages. For a panel of Romanian firms, we find evidence that labor market effects differ from other intraindustry effects. Spillovers across industries dominate those within industries. The supply-backward effect behaves as predicted by theory. Firm-specific level of technology, firm size, and ownership structure are all found to affect spillovers

Topics: FDI, Spillovers, Absorptive Capability, Firm Size, Ownership Structure
Year: 2007
OAI identifier: oai:deepblue.lib.umich.edu:2027.42/64405

Suggested articles

Preview


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.