FDI spillovers on firm survival in Italy: absorptive capacity matters!

Ferragina, Anna Maria; Mazzotta, Fernanda

doi:10.1007/s10961-013-9321-z

Cited by 43 publications

(31 citation statements)

References 55 publications

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“…This may be due to the fact that MNEs in upstream industries provide inputs to domestic firms that were previously unavailable in the country, or make them technologically more advanced or less expensive, or ensure that they are accompanied by the provision of complementary services. The result that only service sectors seem to benefit from FDI vertical spillovers is in line with Ayyagari and Kosová (2010) for the Czech Republic and with the empirical evidence concerning Italy, which indicates a weak presence of FDI-related externalities at the intra-industry level in manufacturing industries Reganati 2002, 2004;Reganati and Sica 2007;Castellani and Zanfei 2007;Imbriani et al 2014;Ferragina and Mazzotta 2013), but positive vertical spillovers in the service sector (Pittiglio et al 2008). …”

Section: Estimation Results For Manufacturing and Service Sectorssupporting

confidence: 62%

Multinational Enterprises, Technological Intensity and Firm Survival. Evidence from Italian Manufacturing and Services Firms

Pittiglio¹,

Reganati

2014

Atl Econ J

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This paper investigates two main questions: Are affiliates of foreign multinationals more likely to exit the market than domestic firms? Does the exit probability of foreign firms depend on the technological environment in which they operate? Controlling for a set of firm- and industry-specific characteristics, our results show that Italian firms owned by foreign firms are more footloose than domestic ones regardless of the macro sector of activity in which they are involved (i.e. manufacturing and services). By taking into consideration the technological environment where firms operate, we also find that foreign ownership still exerts a negative influence on firm survival in both less and more technologically advanced industries. However, there is evidence of a stronger negative influence on the survival of firms operating in low- and medium-low technology industries and in less-knowledge-intensive services

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Section: Estimation Results For Manufacturing and Service Sectorssupporting

confidence: 62%

Multinational Enterprises, Technological Intensity and Firm Survival. Evidence from Italian Manufacturing and Services Firms

Pittiglio¹,

Reganati

2014

Atl Econ J

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“…Generally, whether foreign firms could generate positive spill-over effects to domestic sectors differs amongst nations and nations. It is subject to absorptive capacity of host countries and domestic organizations (Bodman & Le 2013;Ferragina & Mazzotta 2014;Sanchez-Sellero et al 2014;Tang & Zhang 2015;Blomström & Sjöholm 1999). Therefore, absorptive capacity needs taking into consideration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The conclusion is that FDI generates only positive backward linkage and this impact will be facilitated by the stock of human capital. Ferragina & Mazzotta (2014) exploit a database of Italian firms from 2002 to 2010 to test FDI spill-over effects on firm survival, arguing that technology gap and technology intensity of the industry affect impact of FDI externalities on firm survival. Sanchez-Sellero et al (2014) declare that absorptive capacity is essential to gain from FDI spill-over effects and define absorptive capacity as many factors such as: R&D expenditure, intensity, outcomes; organizational structure, human capital, market concentration and business sophistication.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most of papers find the significant impact of absorptive capacity in the link between FDI spill-overs and domestic firms' performance (Blalock 2002;Girma 2005;Anwar & Nguyen 2010). However, proxies for absorptive capacity across these papers are heterogonous and there is a wide range of absorptive capacity measurement such as R&D expenditures and intensity, human capital or technology gap (Girma 2005;Blalock 2002;Ferragina & Mazzotta 2014).…”

Section: Introductionmentioning

confidence: 99%

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FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

Duong¹,

Le²

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

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VU HOANG DUONG, LE VAN HUNG. 2017 This study empirically examines relationship between FDI spill-overs and technical efficiency of domestic firms and role of the absorptive capacity of domestic firms. Data on Vietnamese Annual Enterprises Survey are exploited to build a firm-level panel data on the Vietnamese wearing apparel industry from 2009 to 2013. By applying stochastic production frontier model, this paper shows that there are positive vertical spill-over effects but no horizontal effects. Moreover, this study finds the negative impact of the absorptive capacity of domestic firms on benefits reaped from FDI externalities.

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“…One assumes that a wellfunctioning RIS provides proper grounds for synergistic co-operation between co-located organizations, firms, etc. (Cooke-Leydesdorff 2006 Yet, it was repeatedly pointed out that multinational companies can be crucial players in regional systems (Biggiero 2007, Cantwell-Iammarino 1998, Dachs et al 2008, Ferragina-Mazzotta 2014, Majumdar 2009). This is especially the case in Central and Eastern European countries that rely extensively on the performance of such companies (Inzelt 2008, Radosevic 2002.…”

Section: Introductionmentioning

confidence: 99%

The Effects of FDI on Innova tion Systems in Hungarian Regions: Where is the Synergy Generated?

Lengyel¹,

Leydesdorff²

2015

Reg. Stat.

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In this study, we show how internationalization and foreign-owned firms influence synergies in the regional innovation systems of Hungary. We first distinguish three innovation system functions (knowledge exploitation, knowledge exploration, and organizational control) operating in regions and study their interactions using entropy statistics. The functions and their interactions are measured by analysing the distribution of firms in terms of geographical location, organizational size (number of employees), technologies (NACE codes of the OECD), and ownership (foreign versus domestic share in registered stock) in the 2005. Synergy is defined as mutual information among the three dimensions; a fourth dimension is added in order to bring internationalization (FDI) into the model. The factor is relevant since the four-dimensional model explains the GDP contributions to regional development in Hungary, whereas the three-dimensional model does not. We find that regional innovation systems in Hungary are self-organized differently, in relation to a relatively small number of foreign firms. These firms have a large positive effect on synergy in regions between the Hungarian capital and the Austrian border. However, FDI has negative effects on domestic synergy in the lagging eastern and southern provinces of the country.

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FDI spillovers on firm survival in Italy: absorptive capacity matters!

Cited by 43 publications

References 55 publications

Multinational Enterprises, Technological Intensity and Firm Survival. Evidence from Italian Manufacturing and Services Firms

Multinational Enterprises, Technological Intensity and Firm Survival. Evidence from Italian Manufacturing and Services Firms

FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

The Effects of FDI on Innova tion Systems in Hungarian Regions: Where is the Synergy Generated?

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