Efficiency externalities of trade and alternative forms of foreign investment in OECD countries
AbstractThe literature on the spillover effects of trade and inflows of foreign direct investment (FDI) has concentrated on technological externalities. Little effort has been directed towards identifying their efficiency externalities. This paper measures the efficiency externalities of trade and various forms of foreign investment for a sample of 20 OECD countries between 1982 and 2000 using a stochastic frontier approach. Trade and all foreign investment inflows are found to enhance efficiency, whereas outflows of FDI are found to exacerbate inefficiency. The efficiency externalities from foreign investment are contingent on the absorptive capacity of the host economies. Copyright © 2008 John Wiley & Sons, Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.
Volume (Year): 23 (2008)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.interscience.wiley.com/jpages/0883-7252/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Xu, Bin, 2000. "Multinational enterprises, technology diffusion, and host country productivity growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 477-493, August.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
- Levine, Ross, 2001. "International Financial Liberalization and Economic Growth," Review of International Economics, Wiley Blackwell, vol. 9(4), pages 688-702, November.
- Chris Milner & Thomas Weyman-Jones, 2003. "Relative National Efficiency and Country Size: Evidence for Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 1-14, February.
- Farrokh Nourzad, 2002. "Financial development and productive efficiency: A panel study of developed and developing countries," Journal of Economics and Finance, Springer, vol. 26(2), pages 138-148, June.
- Edward C. Prescott, 1997.
"Needed: a theory of total factor productivity,"
242, Federal Reserve Bank of Minneapolis.
- Kamal Saggi, 2002.
"Trade, Foreign Direct Investment, and International Technology Transfer: A Survey,"
World Bank Research Observer,
World Bank Group, vol. 17(2), pages 191-235, September.
- Saggi, Kamal, 2000. "Trade, foreign direct investment, and international technology transfer : a survey," Policy Research Working Paper Series 2349, The World Bank.
- Boyle, Gerry & McQuinn, Kieran, 2004.
"Why do some countries produce so much more output per worker than others? - A note,"
Research Technical Papers
9/RT/04, Central Bank of Ireland.
- Boyle, G.E. & McQuinn, K., 2003. "Why do some countries produce so much more output per worker than others? A note," Economics, Finance and Accounting Department Working Paper Series n1331103, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Koop, Gary, 2001. "Cross-Sectoral Patterns of Efficiency and Technical Change in Manufacturing," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(1), pages 73-103, February.
- Robert J. Barro & Jong-Wha Lee, 2000.
"International Data on Educational Attainment: Updates and Implications,"
CID Working Papers
42, Center for International Development at Harvard University.
- Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Ben McLean & Sona Shrestha, 2002. "International Financial Liberalisation and Economic Growth," RBA Research Discussion Papers rdp2002-03, Reserve Bank of Australia.
- Hung-jen Wang & Peter Schmidt, 2002.
"One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels,"
Journal of Productivity Analysis,
Springer, vol. 18(2), pages 129-144, September.
- Wang, Hung-jen & Schmidt, Peter, 2001. "One-step and two-step estimation of the effects of exogenous variables on technical efficiency levels," MPRA Paper 31075, University Library of Munich, Germany, revised Mar 2002.
- Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-13, August.
- Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004.
"FDI and economic growth: the role of local financial markets,"
Journal of International Economics,
Elsevier, vol. 64(1), pages 89-112, October.
- Sebnem Kalemli-Ozcan & Laura Alfaro & Selin Sayek & Areendam Chanda, 2002. "FDI and Economic Growth: The Role of Local Financial Markets," Macroeconomics 0212007, EconWPA.
- Pooran Lall & Allen Featherstone & David Norman, 2000. "Productive efficiency and growth policies for the Caribbean," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1483-1493.
- Martín, Carmela & Velazquez, Francisco J, 1997. "The Determining Factors of Foreign Direct Investment in Spain and the rest of the OECD: Lessons for CEECs," CEPR Discussion Papers 1637, C.E.P.R. Discussion Papers.
- Mikael Lindahl & Alan B. Krueger, 2001.
"Education for Growth: Why and for Whom?,"
Journal of Economic Literature,
American Economic Association, vol. 39(4), pages 1101-1136, December.
- Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section..
- Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
- Pack, Howard, 1988. "Industrialization and trade," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 9, pages 333-380 Elsevier.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Richard Kneller & Philip Andrew Stevens, 2006. "Frontier Technology and Absorptive Capacity: Evidence from OECD Manufacturing Industries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 1-21, 02.
- Nigel Driffield & Max Munday, 2001. "Foreign Manufacturing, Regional Agglomeration and Technical Efficiency in UK Industries: A Stochastic Production Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 391-399.
- Nigel Pain & Dawn Holland, 1998. "The Diffusion Of Innovations In Central And Eastern Europe: A Study Of The Determinants And Impact O," NIESR Discussion Papers 205, National Institute of Economic and Social Research.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Narula,Rajneesh & Wakelin,Katharina, 1997. "The pattern and determinants of US foreign direct investment in industrialised countries," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Robert E. Hall & Charles I. Jones, 1999.
"Why Do Some Countries Produce So Much More Output Per Worker Than Others?,"
The Quarterly Journal of Economics,
MIT Press, vol. 114(1), pages 83-116, February.
- Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
- Filippetti, Andrea & Payrache, Antonio, 2010. "Productivity growth and catch up in Europe: A new perspective on total factor productivity differences," MPRA Paper 27212, University Library of Munich, Germany.
- Miljkovic, Dragan & Shaik, Saleem, 2010.
"The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture,"
2010 Annual Meeting, February 6-9, 2010, Orlando, Florida
56334, Southern Agricultural Economics Association.
- Miljkovic, Dragan & Shaik, Saleem, 2010. "The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture," Agribusiness & Applied Economics Report 95749, North Dakota State University, Department of Agribusiness and Applied Economics.
- Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2010.
"An Analysis on Technical Efficiency in Post-reform China,"
41034, University Library of Munich, Germany.
- Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
- Mastromarco Camilla & Laura Serlenga & Yongcheol Shin, 2013. "Globalisation and technological convergence in the EU," Journal of Productivity Analysis, Springer, vol. 40(1), pages 15-29, August.
- Guohua Feng & Apostolos Serletis, 2013. "Undesirable Outputs and a Primal Divisia Productivity Index Based on the Directional Output Distance Function," Working Papers 2013-15, Department of Economics, University of Calgary.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.