Topic
Spillover effect
About: Spillover effect is a research topic. Over the lifetime, 7869 publications have been published within this topic receiving 167367 citations.
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TL;DR: In this article, the causal effect of foreign investment on total factor productivity (TFP) using a new global firm-level database was quantified using the difference in the amount of foreign ownership by financial and industrial investors and simultaneously controlling for unobservable firm and country-sector-year factors.
Abstract: We quantify the causal effect of foreign investment on total factor productivity (TFP) using a new global firm-level database. Our identification strategy relies on exploiting the difference in the amount of foreign investment by financial and industrial investors and simultaneously controlling for unobservable firm and country-sector-year factors. Using our well identified firm level estimates for the direct effect of foreign ownership on acquired firms and for the spillover effects on domestic firms, we calculate the aggregate impact of foreign investment on country-level productivity growth and find it to be very small.
80 citations
TL;DR: The authors suggest that participation in decision making at work increases the probability of participating in poli tics outside the workplace and suggest that the "simple political spillover" hypothesis, which states that participants in decision-making at work increase their probability of taking part in political activities outside of the workplace, is correct.
Abstract: We suggest that the "simple political spillover" hypothesis—that participation in decision making at work increases the probability of participating in poli tics outside the workplace—ought to be r...
80 citations
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TL;DR: The authors quantifies potential global spillovers from an investment slowdown in China and finds that a one percentage point slowdown in investment in China is associated with a reduction of global growth of just under one-tenth of a percentage point.
Abstract: Over the past decade, China's growth model has become more reliant on investment and its footprint in global imports has widened substantially. Several economies within China's supply chain are increasingly exposed to its investment-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers from an investment slowdown in China. It finds that a one percentage point slowdown in investment in China is associated with a reduction of global growth of just under one-tenth of a percentage point. The impact is about five times larger than in 2002. Regional supply chain economies and commodity exporters with relatively less diversified economies are most vulnerable to an investment slowdown in China. The spillover effects also register strongly across a range of macroeconomic, trade, and financial variables among G20 trading partners.
80 citations
01 Jan 2008
TL;DR: In this paper, the authors explored the nature, determinants and growth effects of FDI inflows to transition countries, and provided evidence of both positive and negative FDI spillovers to host economies based on the findings of financial sector FDI performance.
Abstract: Transition countries and emerging economies require new capital inflows if they are to grow and increase their wealth. Even though capital inflows to transition economies slowed down in the late 1990s, annual foreign direct investment (FDI) averaged around 5% of the GDP between 2000 and 2005. This volume explores the nature, determinants and growth effects of FDI inflows to transition countries. It comprises two chapters, providing the theory and evidence of FDI performance in host transition economies. The first chapter deals with the macroeconomic impact of FDI on productivity and growth. The authors challenge the widespread view that FDI has a positive effect on living standards in the host economies. In fact, in a country with a relatively large amount of external trade, the terms of trade ratio will lead to a change in the standard of living to a far greater extent than in the case of productivity (S.H. Hanke). Furthermore, FDI inflows do not always lead to positive spillover effects. The authors give evidence of both positive and negative FDI spillovers to host economies based on the findings of financial sector FDI performance. On the one hand, the presence of foreign banks can improve credit allocation, stimulate growth in firm sales, assets and leverage, but on the other it lowers the proportion and market share of small firms in the total assets of firms (P. Roessl, P. Haiss). Further, the authors conclude that the insti-tutional system and communications infrastructure enable the positive spillovers embedded in FDI. Finally, the authors argue that tax incentives are not necessarily effective in attracting FDI (Ch. Talamo, G. Fazio, W.J. Kim). The second chapter furnishes empirical evidence of FDI’s impact on growth. It reveals three channels through which FDI contributes to the economic growth of host economies: 1) industrial value added and pro-ductivity spillovers; 2) technology transfer and RD 3) in-vestment in human resources. Evidence for the first channel is provided by a regression model as-sessing the relationship between FDI and economic and sector growth, based on a sample of 26 countries in the 1990-2006 period. The results confirm a strong link between net FDI inflows, industry value added and growth per capita. The beneficial effects of FDI were even stronger in countries that were initially characterized by underdeveloped industrial and economic structures (O. Kowalewski). Moreover, FDI contributes to multiplier effects through productivity spillovers. This is confirmed by the authors’ empirical results that attribute a substantial part of the in-
80 citations
TL;DR: In this article, the authors identify firm connections by shared analyst coverage and find that a connected-firm (CF) momentum factor generates a monthly alpha of 1.68% (t = 9.67%).
80 citations