Abstract
AbstractForeign direct investment (FDI) is expected to generate external effects—usually termed FDI spillovers—for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are still indecisive. This study examines firm-level panel data to determine the effects of FDI spillover on firms’ productivity in Bangladesh in comparison to Vietnam. We consider both the horizontal and vertical (backward and forward) spillover effects of FDI. We find evidence that Bangladeshi firms gain productivity improvement through intra-industry or horizontal linkages, whereas Vietnamese firms gain through backward linkages. Our findings suggest that increases in foreign presence in the same industry for Bangladesh and in downstream industries for Vietnam are related with increase in output of domestic firms.
Publisher
Springer Science and Business Media LLC
Subject
Economics, Econometrics and Finance (miscellaneous),Economics and Econometrics
Reference31 articles.
1. Aitken BJ, Harrison AE (1999) Do Domestic firms benefit from direct foreign investment? Evidence from Venezuela. Am Econ Rev 89:605–618
2. Barrios S, Dimelis S, Louri H, Strobl E (2004) Efficiency spillovers from foreign direct investment in the EU periphery: a comparative study of Greece, Ireland, and Spain. Rev World Econ 140(4):688–705
3. Blalock G, Gertler P (2008) Welfare gains from foreign direct investment through technology transfer to local suppliers. J Int Econ 74:402–421
4. Blalock, G. (2002). Technology adoption from foreign direct investment and exporting: evidence from indonesian manufacturing. PhD Thesis, Haas Business School, University of California Berkley.
5. Bwalya SM (2006) Foreign direct investment and technology spillovers: evidence from panel data analysis of manufacturing firms in Zambia. J Dev Econ 81(2):514–526
Cited by
8 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献