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 paper, the authors examine the spatial distribution of foreign-owned firms in the country and analyse the effect that their presence at the local, regional and national levels has on the productivity of domestic firms.
Abstract: Studies on the productivity spillovers of FDI have concentrated on the nationalsectoral level. As a result, little is known about the impact of FDI on absolute and relative regional economic performance. In this paper we examine this issue by relying on a unique dataset of over 20,000 Greek firms for the period 2002-2006 covering all sectors of economic activity. We examine the spatial distribution of foreign-owned firms in the country and analyse the effect that their presence – at the local, regional and national levels – has on the productivity of domestic firms. We find strong evidence suggesting that foreignowned firms self-select into regions and sectors of high productivity. Net of this selection effect, the impact of foreign presence on domestic productivity is negative – although at the very local level some positive spillover effects are identifiable. The bulk of the effects concentrate in non-manufacturing activities, high-tech sectors, and medium-sized high-productivity firms. Importantly, this effect is not constant across space however. Productivity spillovers tend to be negative in the regions hosting the main urban areas in the country but positive in smaller and more peripheral regions. In this way, despite the tendency of FDI to concentrate in a limited number of areas within the country – those of the highest level of development – the externalities that FDI activity generates to the local economies appear to be of a rather equilibrating character.
52 citations
TL;DR: In this article, the authors examined how far agricultural output in Malaysia has been affected by inter-sectoral spillovers, and found that expansion of manufacturing output, though associated with reduced agricultural output, is associated with agricultural expansion over the long-run.
Abstract: Does growth in the manufacturing sector of an economy spillover to agriculture, or do sectors share similar growth rates only when they share some common exogenous stimuli? The limited number of investigations of this issue, for cross-sections of countries, have found some evidence in favour of spillovers, though the methodologies used cannot readily separate correlation from causation. Adapting the Feder (1982) model of sectoral externalities to a time-series context, we examine how far agricultural output in Malaysia has been affected by inter-sectoral spillovers. Our results suggest that expansion of manufacturing output, though associated with reduced agricultural output in the short-run, is associated with agricultural expansion over the long-run. Service output growth on the other hand seems to have been inimical to agricultural growth in both the short- and long-runs, while causality testing supports the case for spillovers rather than “common causes”. Evidence on sectoral productivity is consistent with neoclassical arguments suggesting that the benefits of higher productivity in manufacturing tend to spill over to agriculture, encouraging productivity convergence.
52 citations
TL;DR: In this paper, the authors examined the price and volatility dynamics between China and major stock markets in the Asia-Pacific, investigating the effects of the Chinese stock market crash (2015-2016) for the first time.
52 citations
TL;DR: Using the forecast error variance decomposition from a vector auto-regression, the authors examined both average and time-varying spillovers of macroeconomic uncertainty across major economies since 1997 and compared the ongoing crisis with earlier episodes.
Abstract: Using the forecast error variance decomposition from a vector auto-regression, this article examines both average and time-varying spillovers of macroeconomic uncertainty across major economies since 1997 and compares the ongoing crisis with earlier episodes We show that spillover effects of macroeconomic uncertainty across major economies display no trend but clear bursts and reach its respective peaks during the 2008 global financial crisis, which attests to the severity of the current episode
52 citations
Posted Content•
TL;DR: In this article, a log-linear model was proposed to examine the productivity effect of foreign ownership in firms and foreign presence in industries and regions in Eastern Europe using panel data on more than 8000 plants in the Czech Republic, Poland, Hungary, Romania and Bulgaria.
Abstract: Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. Foreign direct investment (FDI) is generally perceived as the best channel for technology transfer, not only across national boundaries but also between firms - in particular, between foreign and domestic companies. This paper tests this hypothesis for five transition countries in Eastern Europe using panel data on more than 8000 plants in the Czech Republic, Poland, Hungary, Romania and Bulgaria. In a log-linear model, the Cobb-Douglas production function is estimated to examine the productivity effect of: (a) foreign ownership in firms, and (b) foreign presence in industries and regions. In the first case, regression coefficients indicate a positive correlation between foreign equity participation and plant productivity. In the second case, the impact of foreign investment on productivity of domestically owned firms turns out to be either negative or insignificant. Thus, the study corroborates the hypothesis that technology is transferred internationally through multinational companies, but provides no evidence of diffusion of technology from foreign to domestic firms.
52 citations