Spillover effect

About: Spillover effect is a research topic. Over the lifetime, 7869 publications have been published within this topic receiving 167367 citations.

Foreign direct investment spillovers within and between sectors: evidence from Hungarian data

Abstract: This article analyses how FDI influences labour productivity of domestic firms in Hungary We find that foreign firms perform better than local firms The presence of foreign firms has a positive spillover effect on labour productivity of local firms in the same sector, specifically in very open manufacturing sectors Spillover effects between sectors are found to be relatively more important than spillover effects within sectors Foreign investment in user sectors has a positive spillover effect on local suppliers, while the opposite holds for foreign investment in supplier sectors Absorption and openness play a significant role in these spillover effects

FDI Impact and Spillover: Evidence from China's Electronic and Textile Industries

Abstract: M ULTINATIONAL Corporations (MNCs) may invest in a host country when they possess ‘non-tangible productive assets’ that cannot be easily licensed but can be transferred within the firm. Direct equity participation in the host country is therefore required for MNCs to reap the rents from their nontangible productive assets, which may include technological know-how, marketing and managing skills, relationships with suppliers and customers, and reputation. If foreign direct investment (FDI) does effectively convey these assets, we should expect FDI to boost the productivity of the host country firms that receive FDI. A more complex issue is the indirect spillover effects of FDI to non-FDI domestic firms. To the extent that FDI may bring new products and technologies to the host country, non-FDI receiving domestic firms may also stand to benefit from FDI through personnel turnover, demonstration effects and knowledge spillovers. The presence of FDI in a certain industry, however, may exert adverse effect on domestic firms in that industry. By enjoying better technologies and lower production costs, firms with FDI may cut into the market share of domestic firms without FDI. In a short run imperfectly competitive market structure, the productivity of domestic firms may be reduced when sales fall, so that fixed costs are spread over fewer units. In the long run, however, the increased competition induced by the increased presence of FDI in domestic industries may force

Trade, Foreign Direct Investment, and R&D Spillovers

Abstract: Attempts to measure the spillover effects of multinational enterprises on host countries have generally been cross-sectional and limited to labour productivity in manufacturing for a single country. Recent work in growth theory has measured the extent to which growth in total factor productivity in a country depends not only on domestic RD the importance of the trade channel is much reduced once FDI is included; and the overall spillovers increase significantly with the inclusion of FDI.

Foreign direct investment, R&D and spillover efficiency: Evidence from Taiwan's manufacturing firms

Abstract: Using Taiwanese firm‐level data, we confirm that foreign direct investment and R&D have a positive impact, or spillover effect, on productivity. Furthermore, labour quality, firm size, market structure, and export orientation all affect a firm's productivity. Applying Heckman's [1976] two‐stage estimation method, we find that firms self‐select into R&D or non‐R&D groups. After correcting for this selection bias, we find that foreign direct investment, local technology purchase, and outward foreign investment are substitutes to R&D activity. These results are mainly due to the significant effect of industry‐wide technology spillovers. The major policy implications derived from this study are that governments in developing countries may first wish to adopt policies encouraging foreign direct investment to foster technology transfer and industry‐wide knowledge spillovers in the short run. However, once the country's technological capability is established it appears critical to switch towards policies that p...