Credit Constraints and FDI Spillovers in China

Agarwal, Natasha; Milner, Chris; Riaño, Alejandro

doi:10.2139/ssrn.1966037

Cited by 9 publications

(8 citation statements)

References 73 publications

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“…This facilitates the domestic firms' absorptive capacity and reduces the risk of investment to imitate technology as well as enhances spending on workers job training. The finding is in line with the firm level study result by Farole and Winkler (2012) and Agarwal et al (2011).…”

Section: Table 3: Fixed Effects Estimation For Model 2 and Model 3 Desupporting

confidence: 91%

“…The role of access to finance as mediating factor for FDI spillovers is also controversial. Some argue that well developed financial system favors the existence of FDI spillovers as it reduces the risk of investment to imitate technology and skill development of workers (Agarwal et al, 2011;Hermes and Lensink, 2003). Better access to finance enhances the absorptive capacity of domestic firms and their benefit from technological spillovers.…”

Section: Host Country Factors and Institutional Framework: Main Argummentioning

confidence: 99%

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The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: Evidence from Manufacturing Industry

Tesfaye¹

2019

JESD

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This study is aimed at assessing the role of host country factors and institutions in mediating the intra-industry productivity spillovers in the manufacturing industry. In this study, we use firm-level survey data on large and medium scale manufacturing industries collected by the Central Statistics Authority (CSA) of Ethiopia. Panel data econometrics with fixed effects estimation technique is used as a method of analysis. After addressing all the estimation issues, we estimate the baseline model containing only the interaction terms as an explanatory variable and the extended model incorporating observable and unobservable control variables. The observable control variables, industry fixed effects and firm fixed effects are included in the model after checking their respective significance. We incorporate these variables in our estimation to be more confident in isolating the spillovers effect of FDI on productivity of domestic firms.The estimation result revealed that the intra-industry spillovers effect of FDI on productivity of domestic firms is positive except through the labor mobility channel which will not be reversed even in one year. In contrast, the estimation result suggests that the degree of openness, human capital stock and financial sector efficiency positively and significantly mediates the productivity effect from FDI. Concerning the control variables included in the model, capital intensity and age positively and significantly affects domestic firms' productivity.

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Section: Table 3: Fixed Effects Estimation For Model 2 and Model 3 Desupporting

confidence: 91%

Section: Host Country Factors and Institutional Framework: Main Argummentioning

confidence: 99%

The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: Evidence from Manufacturing Industry

Tesfaye¹

2019

JESD

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Section: Host Country Factors and Institutional Framwork: Main Argumentsmentioning

confidence: 99%

The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: The Case of Manufacturing Sector

Tesfaye

2015

ABC res. alert

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This dissertation is submitted in partial fulfillment of the requirements for the award of the Master of Globalization and Development of the Institute of Development Policy and Management (IOB) of the University of Antwerp.The dissertation focuses on the role of selected macro level factors and institutions in mediating the FDI spillovers in the manufacturing industries of Ethiopia. With the aim of speeding up the country"s economic development; government undertakes various policy reforms. Especially, FDI specific policy reforms results in steady inflow of FDI to the country in general and to manufacturing sector in particular. Substantial research has been conducted on macroeconomic economic contribution of FDI inflow to the country. However, productivity gains of domestic firms from technology and knowledge transfer is the most valuable contribution of FDI to long-run economic development of the country. I am interested in assessing the issue due to two reasons: Firstly, as far as our knowledge isx

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“…Studies find that well-developed financial markets may facilitate a domestic firm's absorptive capacity. Agarwal, Milner, and Riaño (2011), for instance, find that FDI spillovers are lower or even negative for Chinese manufacturing firms that are credit-constrained. Javorcik and Spatareanu (2009) find that less liquidity-constrained firms are more likely to self-select into supplying multinationals.…”

Section: Access To Financementioning

confidence: 99%

Making Foreign Direct Investment Work for Sub-Saharan Africa:Local Spillovers and Competitiveness in Global Value Chains

Farole¹,

Winkler²

2014

104

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Some rights reserved 1 2 3 4 16 15 14 13 This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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Credit Constraints and FDI Spillovers in China

Cited by 9 publications

References 73 publications

The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: Evidence from Manufacturing Industry

The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: Evidence from Manufacturing Industry

The Role of Host Country Factors and Institutional Framework for FDI Spillovers in Ethiopia: The Case of Manufacturing Sector

Making Foreign Direct Investment Work for Sub-Saharan Africa:Local Spillovers and Competitiveness in Global Value Chains

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