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Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia

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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.

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File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P195.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 32 (2012)
Issue (Month): 3 ()
Pages: 2015-2025

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Handle: RePEc:ebl:ecbull:eb-12-00058

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Related research

Keywords: FDI; Cambodia; Productivity; Spillovers; Technology Gap; Absorptive Capacity;

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  1. Sophia Dimelis & Helen Louri, 2004. "Foreign direct investment and technology spillovers: Which firms really benefit?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 140(2), pages 230-253, June.
  2. Glass, Amy Jocelyn & Saggi, Kamal, 1998. "International technology transfer and the technology gap," Journal of Development Economics, Elsevier, Elsevier, vol. 55(2), pages 369-398, April.
  3. Blalock, Garrick & Gertler, Paul J., 2009. "How firm capabilities affect who benefits from foreign technology," Journal of Development Economics, Elsevier, Elsevier, vol. 90(2), pages 192-199, November.
  4. Girma, Sourafel & Görg, Holger & Pisu, Mauro, 2007. "Exporting, Linkages and Productivity Spillovers from Foreign Direct Investment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6383, C.E.P.R. Discussion Papers.
  5. 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.
  6. Salvador Barrios & Eric Strobl, 2002. "Foreign direct investment and productivity spillovers: Evidence from the Spanish experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 138(3), pages 459-481, September.
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