scispace - formally typeset
Open AccessJournal ArticleDOI

To share or not to share: Does local participation matter for spillovers from foreign direct investment? ☆

Beata Smarzynska Javorcik, +1 more
- 01 Aug 2003 - 
- Vol. 85, Iss: 1, pp 194-217
Reads0
Chats0
TLDR
In this article, the authors examined whether the degree of spillovers from foreign direct investment is affected by the foreign ownership share in investment projects and found that the presence of partially foreign-owned projects is correlated with higher productivity of domestic firms in upstream industries suggesting that domestic suppliers benefit from contacts with multinational customers.
About: 
This article is published in Journal of Development Economics.The article was published on 2003-08-01 and is currently open access. It has received 501 citations till now. The article focuses on the topics: Foreign direct investment & Foreign ownership.

read more

Figures
Citations
More filters
Posted Content

Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

Beata Smarzynska Javorcik, +2 more
- 01 Oct 2002 - 
TL;DR: In this paper, the authors studied the impact of trade and foreign direct investment on the productivity of domestic firms in the manufacturing sector in the country of Lithuania and found that a 10 percent increase in the foreign presence in downstream sectors is associated with a 0.38 percent rise in output of each domestic firm in the supplying industry.
BookDOI

Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

Beata Smarzynska Javorcik
- 31 Oct 2002 - 
TL;DR: In this paper, the authors focus on the issue of FDI spillovers through backward linkages and go beyond existing studies by shedding some light on factors driving this phenomenon, which is consistent with the existence of knowledge spillovers from foreign affiliates to their local suppliers, but they may also be a result of increased competition in upstream sectors.
Journal ArticleDOI

Determinant Factors of FDI Spillovers - What Do We Really Know?

Nuno Crespo, +1 more
- 01 Mar 2007 - 
TL;DR: In this article, the authors survey the arguments that support these factors and the empirical evidence already produced, and the results show contrary effects or, in some cases, are still insufficient to draw reliable conclusions.
Journal ArticleDOI

Estimating vertical spillovers from FDI: Why results vary and what the true effect is

Tomas Havranek, +2 more
- 01 Nov 2011 - 
TL;DR: In the last decade, more than 100 researchers have examined productivity spillovers from foreign affiliates to local firms in upstream or downstream sectors, and the results vary broadly across methods and countries.
Journal ArticleDOI

Collecting the pieces of the FDI knowledge spillovers puzzle

Roger Smeets
- 19 Mar 2008 - 
TL;DR: This paper reviewed the recent theoretical and empirical literature that responds to these inconclusive results and considered three main issues: spillover channels, mediating factors, and FDI heterogeneity, concluding that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from Foreign Direct Investment (FDI).
References
More filters
Journal ArticleDOI

The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration

Sanford J. Grossman, +1 more
- 01 Aug 1986 - 
TL;DR: In this paper, a theory of costly contracts is presented, which emphasizes the contractual rights can by of two types: specific rights and residual rights, and when it is costly to list all specific rights over assets, it may be optimal to let one party purchase all residual rights.
Journal ArticleDOI

Property Rights and the Nature of the Firm

Oliver Hart, +1 more
- 01 Dec 1990 - 
TL;DR: In this article, the authors provide a framework for addressing the question of when transactions should be carried out within a firm and when through the market, by identifying a firm with the assets that its owners control.
Posted Content

The Dynamics Of Productivity In The Telecommunications Equipment Industry

George S Olley, +1 more
- 01 Feb 1992 - 
TL;DR: In this article, the authors developed an estimation algorithm that takes into account the relationship between productivity on the one hand, and both input demand and survival on the other, guided by a dynamic equilibrium model that generates the exit and input demand equations needed to correct for the simultaneity and selection problems.
Journal ArticleDOI

Estimating production functions using inputs to control for unobservables

James Levinsohn, +1 more
- 01 Apr 2003 - 
TL;DR: Olley and Pakes as discussed by the authors show that when intermediate inputs (i.e., those inputs which are typically subtracted out in a value-added production function) can also solve this simultaneity problem, and discuss some potential benefits of expanding the choice set of proxies to include these inputs.
ReportDOI

The Dynamics of Productivity in the Telecommunications Equipment Industry

G. Steven Olley, +1 more
- 01 Nov 1996 - 
TL;DR: In this paper, an empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity.
Related Papers (5)

Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

Beata Smarzynska Javorcik
- 31 Oct 2002 - 

Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela

Brian J. Aitken, +1 more
- 01 Jun 1999 - 

Much ado about nothing? do domestic firms really benefit from foreign direct investment?

Holger Görg, +1 more
- 01 Sep 2004 - 

Estimating production functions using inputs to control for unobservables

James Levinsohn, +1 more
- 01 Apr 2003 - 

The Dynamics of Productivity in the Telecommunications Equipment Industry

G. Steven Olley, +1 more
- 01 Nov 1996 - 
Frequently Asked Questions (1)
Q1. What are the contributions mentioned in the paper "To share or not to share: does local participation matter for spillovers from foreign direct investment?" ?

This study examines whether the degree of spillovers from foreign direct investment is affected by the foreign ownership share in investment projects. The analysis, based on an unbalanced panel of Romanian firms during 1998-2000, produces evidence consistent with positive intra-sectoral spillovers resulting from fully-owned foreign affiliates but not from projects with joint domestic and foreign ownership. This finding is in line with the literature suggesting that foreign investors tend to put more resources into technology transfer to their wholly-owned projects than to those owned partially. Further, the data indicate that the presence of partially foreign-owned projects is correlated with higher productivity of domestic firms in upstream industries suggesting that domestic suppliers benefit from contacts with multinational customers. These results are consistent with the observation that foreign investors entering a host country through greenfield projects are less likely to source locally than those engaged in joint ventures or partial acquisitions. They are also in line with the evidence suggesting that fully-owned foreign subsidiaries use newer or more sophisticated technologies than jointly owned investment projects and thus may have higher requirements vis-à-vis suppliers.