Some twins are not alike: FDI premia in the former Soviet states

Abstract

In this paper, we estimate Foreign Direct Investment (FDI) premia of firms from three distinctive groups of former Soviet states, designated CIS, Developed and Developing. Using Orbis data, we provide within-group and between-group results on the effects of outward FDI (OFDI) and inward FDI (IFDI) on firm-level innovation. As the m ost notable finding, OFDI firm s innovate m ore than IFDI firm s, which in turn innovate more than non-FDI firm s. The innovation effect of OFDI is the largest for firm s from the Developing economies, followed by the Developed and CIS countries. The innovation effect of IFDI is the larges t for firms from the Developing economies, followed by the CIS and Developed countries. FDI to and from Europe have the larg est impact on innovation; this holds across country groups.JEL: F23, L25, O57

Estimating the ex‐ante and the ex‐post effects of Chinese outward FDI

“…Complementary evidence from single-country analyses is available for Germany (Arnold & Hussinger, 2010;, France (Engel & Procher, 2012), Japan (Head & Ries, 2003;Kimura & Kiyota, 2006), the UK (Girma, 2005), Ireland (Girma et al, 2004) and the US (Helpman et al, 2004). Multiple-country studies on the EU (Gattai & Sali, 2018), the BRIC (Gattai et al, 2018;Gattai & Natale, 2016) and the former Soviet states (Gattai et al, 2019) confirm that firms engaged in outward FDI are in the minority, but outperform those that only operate domestically.…”