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Productivity Spillovers From Foreign Direct Investment: Evidence From UK Industry Level Panel Data

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Author Info
Xiaming Liu (Aston Business School)
Pamela Siler (University of Abertay Dundee)
Chengqi Wang (University of Abertay Dundee)
Yingqi Wei (Lancaster University)

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Abstract

This paper examines intra-industry productivity spillovers from foreign direct investment (FDI) in the UK manufacturing sector. The empirical analysis uses panel data for 48 UK industries over the period 1991 – 1995. A major contribution is empirical evidence on spillover effects in situations where the host country is developed. The results indicate that the very presence of FDI has a positive spillover impact on the productivity of UK-owned firms. The analysis also shows that the extent to which local firms benefit from the introduction of advanced technology depends largely on their own technological capabilities.© 2000 JIBS. Journal of International Business Studies (2000) 31, 407–425

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Article provided by Palgrave Macmillan Journals in its journal Journal of International Business Studies.

Volume (Year): 31 (2000)
Issue (Month): 3 (September)
Pages: 407-425
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Handle: RePEc:pal:jintbs:v:31:y:2000:i:3:p:407-425

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  1. Pradhan, Jaya Prakash, 2004. "FDI spillovers and local productivity growth: evidence from Indian pharmaceutical industry," MPRA Paper 17080, University Library of Munich, Germany. [Downloadable!]
  2. Blomström, Magnus & Kokko, Ari, 2003. "Human Capital and Inward FDI," CEPR Discussion Papers 3762, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Argentino Pessoa, 2005. "Foreign direct investment and total factor productivity in OECD countries: evidence from aggregate data," FEP Working Papers 188, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  4. Colm Kearney & Frank Barry, 2005. "MNEs and Industrial Structure in Host Countries:A Mean Variance Analysis of Ireland’s Manufacturing Sector," The Institute for International Integration Studies Discussion Paper Series iiisdp023, IIIS. [Downloadable!]
  5. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, The European Institute of Japanese Studies.
    Other versions:
  6. Della Temenggung, 2007. "Productivity Spillovers from Foreign Direct Investment: Indonesian Manufacturing Industry’s Experience 1975-2000," DEGIT Conference Papers c012_048, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  7. Isabel Proença & Maria Paula Fontoura & Nuno Crespo, 2002. "Productivity Spillovers from Multinational Corporations in the Portuguese Case: Evidence from a Short Time Period Panel Data," Working Papers 2002/06, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  8. Yingqi Wei & Xiaming Liu, 2004. "Impacts of R and D, exports and FDI on productivity in Chinese manufacturing firms," Working Papers 000246, Lancaster University Management School, Economics Department. [Downloadable!]
  9. Guest Editors: Ana Teresa Tavares & Stephen Young, 2005. "FDI and multinationals: patterns, impacts and policies," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 12(1), pages 3-16, February. [Downloadable!] (restricted)
  10. Görg, Holger & Greenaway, David, 2003. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," IZA Discussion Papers 944, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Yingqi Wei & Xiaming Liu & David Parker & Kirit Vaiyda, 2000. "The impact of foreign direct investment on labour productivity in the Chinese electronics industry," Working Papers 000025, Lancaster University Management School, Economics Department. [Downloadable!]
  12. Patibandla, Murali & Petersen, Bent, 2001. "Role of Transnational Corporations in the Evolution of a high-tech Industry: The Case of India’s Software Industry," Working Papers 5-2001, Copenhagen Business School, Department of International Economics and Management. [Downloadable!]
  13. Cuyvers L. & Plasmans J. & Soeng R. & Van den Bulcke D., 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. [Downloadable!]
  14. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June. [Downloadable!]
    Other versions:
  15. Argentino Pessoa, 2008. "Multinational Corporations, Foreign Investment, and Royalties and License Fees: Effects on Host-Country Total Factor Productivity," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 28, pages 6-31, December. [Downloadable!]
  16. Chiara Guardo & Giovanni Valentini, 2007. "Taking Actively Advantage of MNCs’ Presence," Small Business Economics, Springer, vol. 28(1), pages 55-68, January. [Downloadable!] (restricted)
  17. Sule Ozler & Erol Taymaz, 2004. "Does foreign ownership matter for survival and growth? Dynamics of competition and foreign direct investment," ERC Working Papers 0406, ERC - Economic Research Center, Middle East Technical University, revised Mar 2004. [Downloadable!]
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