Are there positive spillovers from direct foreign investment?

Haddad, Mona; Harrison, Ann

doi:10.1016/0304-3878(93)90072-u

Cited by 1,104 publications

(609 citation statements)

References 6 publications

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“…Haddad and Harrison (1993) find increased industry-level FDI is correlated with lower, not higher, domestic-plant productivity in Moroccan manufacturing plants. Aitken and Harrison (1999) find the same negative result for Venezuelan manufacturing.…”

Section: Empirical Evidence On These Linksmentioning

confidence: 67%

Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?

Slaughter¹

2004

Labor and the Globalization of Production

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Section: Empirical Evidence On These Linksmentioning

confidence: 67%

Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?

Slaughter¹

2004

Labor and the Globalization of Production

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“…On the other hand, the study of Haddad and Harrison [1993] for Morocco concludes that foreign presence has no significant effect on local labour productivity. The paper concludes that large technology gaps inhibit spillovers from FDI to local firms in Moroccan manufacturing.…”

Section: Fdi and Productivitymentioning

confidence: 96%

The impact of foreign direct investment on labour productivity in the Chinese electronics industry

Liu

Parker

Vaidya

et al. 2001

International Business Review

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Foreign direct investment (FDI) may have a positive impact on labour productivity in recipient industries through direct introduction of capital, technology and management skills and indirectly through spillover effects on domestic firms. This study uses a model intended to examine the overall effects of inward FDI in the Chinese electronics industry. A panel data set is used for 41 sub-sectors of the industry in 1996 and 1997 having differing levels of FDI. Labour productivity is modelled as dependent on the degree of foreign presence in the industry and other variables, namely capital intensity, human capital and firm size for scale factors. Various econometric estimation techniques for panel data are compared to obtain an appropriate statistical model. The results suggest that foreign presence in the industry was associated with higher labour productivity.

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“…It is often found to be negative or non-existent in developing countries (e.g. Aitken and Harrison, 1999 for Venezuelan firms, or Haddad and Harrison, 1993 for Moroccan firms), but it can be positive for developed countries (e.g. Keller and Yeaple, 2003 for the U.S. firms, Haskel et al, 2007 for U.K. firms).…”

Section: Horizontal or Vertical Spillover?mentioning

confidence: 99%

How do Chinese industries benefit from FDI spillovers?

Ito

Yashiro

et al. 2012

China Economic Review

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Recently, Foreign Invested Enterprises (FIEs) in China have increased their investment in not only production activity but also R&D activity. This paper examines the impact of spillovers from such activities on two types of innovations by Chinese domestic firms: Total Factor Productivity (TFP) and invention patent application, using comprehensive industry and province-level data. We evaluate such spillovers according to FIEs' ownership structure, the origin of foreign funds, and the type of their activity: R&D, and production. We find an interesting asymmetry between spillovers to TFP and patent application：while we do not find significant intra-industry spillovers from FIEs, which is in line with previous studies, we find robust inter-industries spillover on TFP. On the other hand, we find substantial intra-industry spillovers promoting invention patent application but no evidence of inter-industries spillovers. Furthermore, whereas spillovers from FIEs to Chinese firms' TFP stem from their production activities, the source of spillovers to invention patent application is mostly through their R&D activity. Our findings indicate a need for multi-dimensional evaluation on the role of FDI in developing countries.Keywords: China, FDI spillovers, R&D, Innovation JEL classifications: O12;O3;F23;O53 This paper is one of the products of DRC-RIETI joint research. We are grateful to Masahisa Fujita, Masayuki Morikawa and participants of the DRC-RIETI joint workshop at RIETI and DRC for their valuable comments. Remaining errors are those of the authors. The opinions expressed in this paper do not reflect those of RIETI or DRC of the State Council,

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Are there positive spillovers from direct foreign investment?

Cited by 1,104 publications

References 6 publications

Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?

Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?

The impact of foreign direct investment on labour productivity in the Chinese electronics industry

How do Chinese industries benefit from FDI spillovers?

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