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Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia

Author

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  • Savuth Cheng

    (Nagoya University, Graduate School of Economics)

Abstract

This paper investigates productivity spillovers from Foreign Direct Investment (FDI) to the host country. By using firm-level data from Cambodia and by regressing domestic firms' total factor productivity (TFP) and labor productivity on FDI, the study reveals that domestic firms significantly benefit from productivity spillovers when their level of technology is moderately below that of foreign competitors. The finding suggests that promoting FDI in Cambodia is needed when the technology gap exists.

Suggested Citation

  • Savuth Cheng, 2012. "Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia," Economics Bulletin, AccessEcon, vol. 32(3), pages 2015-2025.
    • Handle: RePEc:ebl:ecbull:eb-12-00058
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P195.pdf
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    References listed on IDEAS

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    Cited by:

    1. Moralles, Herick Fernando & Moreno, Rosina, 2020. "FDI productivity spillovers and absorptive capacity in Brazilian firms: A threshold regression analysis," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 257-272.
    2. Peng, Fei & Peng, Langchuan & Wang, Zheng, 2021. "How do VAT reforms in the service sectors impact TFP in the manufacturing sector: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    FDI; Cambodia; Productivity; Spillovers; Technology Gap; Absorptive Capacity;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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