Local technological capability and productivity spillovers from FDI in the Uruguayan manufacturing sector

Kokko, Ari; Tansini, Rubén; Zeján, Mario

doi:10.1080/00220389608422430

Cited by 395 publications

(254 citation statements)

References 5 publications

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“…As mentioned earlier, the current study only examined the influence of FDI on the combined productivity of local and foreign owned sectors because of the lack of separate data on productivity, capital intensity, firm size and human capital for these two sectors. Thus, while Blomstrom and Wolff (1994) and Kokko et al (1996), among others, find a positive impact of FDI on the productivity in local firms in developing countries, the current study could only show that FDI has a positive impact on the combined productivity of local and foreign firms. Unlike Aitken and Harrison (1999), who assess the impact of FDI on foreign-invested and local enterprises respectively at the firm level, we were not able to separate the FDI effects on foreign subsidiaries from the effects on local firms.…”

Section: Resultsmentioning

confidence: 64%

“…Using an augmented production function, Caves found that the very presence of foreign firms had a positive impact on labour productivity in the industries studied. Subsequent studies of this type by Globerman [1979] for Canada, by Blomstrom and Persson [1983], Kokko [1994], and Blomstrom and Wolff [1994] for Mexico, by Kokko, Tansini and Zejan [1996] for the Uruguayan manufacturing sector, and by Liu et al [2000] for UK manufacturing, confirm positive productivity spillovers from FDI.…”

Section: Fdi and Productivitymentioning

confidence: 95%

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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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Section: Resultsmentioning

confidence: 64%

Section: Fdi and Productivitymentioning

confidence: 95%

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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show abstract

“…Several country studies have been carried out, providing diverging results on the role of FDI spillovers with respect to stimulating economic growth. Whereas positive effects from spillovers have been found for, HJ Mexico (Blomström and Persson, 1983;Blomström and Wolff, 1994;Kokko, 1994), Uruguay (Kokko, Tansini, and Zejan, 1996) and Indonesia (Sjöholm, 1999b), no spillovers were traced in studies for Morocco (Haddad and Henderson, 1993) and Venezuela (Aitken and Harrison, 1999). These diverging results may underline the crucial role of certain host country characteristics necessary to let FDI contribute positively to economic growth through spillovers.…”

Section: $%675$and7mentioning

confidence: 71%

Foreign direct investment, financial development and economic growth

Hermes

Lensink

2003

Journal of Development Studies

843

547

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This article argues that the development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. A more developed financial system positively contributes to the process of technological diffusion associated with FDI. The article empirically investigates the role the development of the financial system plays in enhancing the positive relationship between FDI and economic growth. The empirical investigation presented in the article strongly suggests that this is the case. Of the 67 countries in data set, 37 have a sufficiently developed financial system in order to let FDI contribute positively to economic growth. Most of these countries are in Latin America and Asia.

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“…Are some firms better placed to capture the spillover benefits of foreign-owned firms? Absorptive capacity effects have previously been explored in the productivity spillovers literature by Cohen and Levinthal (1989); Grünfeld (2003); Girma and Wakelin (2002);Haskel et al (2002); Kokko et al (1996). However, to the best of our knowledge there is no previous study on the effects of sender capacity.…”

Section: Section 1: Introductionmentioning

confidence: 73%