Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia
AbstractThis 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.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 3 ()
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FDI; Cambodia; Productivity; Spillovers; Technology Gap; Absorptive Capacity;
Find related papers by JEL classification:
- F2 - International Economics - - International Factor Movements and International Business
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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- Girma, Sourafel & Görg, Holger & Pisu, Mauro, 2008.
"Exporting, linkages and productivity spillovers from foreign direct investment,"
Open Access Publications from Kiel Institute for the World Economy
4265, Kiel Institute for the World Economy (IfW).
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- CUYVERS, Ludo & SOENG, Reth & PLASMANS, Joseph & VAN DEN BULCKE, Daniël, 2008. "Productivity spillovers from foreign direct investment in the Cambodian manufacturing sector: Evidence from establishment-level data," Working Papers 2008004, University of Antwerp, Faculty of Applied Economics.
- Glass, Amy Jocelyn & Saggi, Kamal, 1998. "International technology transfer and the technology gap," Journal of Development Economics, Elsevier, vol. 55(2), pages 369-398, April.
- Salvador Barrios & Eric Strobl, 2002. "Foreign direct investment and productivity spillovers: Evidence from the Spanish experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 459-481, September.
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