Abstract Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers from multinational firms can be particularly beneficial to firms in less developed economies, because technological superiority and management expertise of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firms' spillovers might vary with respect to two key features of domestic firms: their productivity level and their export status. In line with theories on the absorptive capacity of firms, we argue on the basis of an empirical analysis of Hungarian firms that larger and more productive firms are more able than smaller firms to reap spillovers from multinationals. However, the export status is found to be of minor importance once higher productivity is controlled for. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd.
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Article provided by Blackwell Publishing in its journal World Economy.
Volume (Year): 32 (2009) Issue (Month): 10 (October) Pages: 1408-1433 Download reference. The following formats are available: HTML
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Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2007.
"FDI Spillovers at Regional Level: Evidence from Portugal,"
Working Papers
2007/28, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
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