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Local technological capability and productivity spillovers from FDI in the Uruguayan manufacturing sector

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  • Ari Kokko
  • Ruben Tansini
  • Mario Zejan

Abstract

This article examines intra‐industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally‐owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a positive and statistically significant spillover effect only in a sub‐sample of locally‐owned plants with moderate technology gaps vis‐à‐vis foreign firms. Our interpretation is that there are firm‐specific differences in the ability to absorb spillovers, and that these may explain some of the contradictory findings of earlier spillover studies.

Suggested Citation

  • Ari Kokko & Ruben Tansini & Mario Zejan, 1996. "Local technological capability and productivity spillovers from FDI in the Uruguayan manufacturing sector," Journal of Development Studies, Taylor & Francis Journals, vol. 32(4), pages 602-611.
    • Handle: RePEc:taf:jdevst:v:32:y:1996:i:4:p:602-611
    DOI: 10.1080/00220389608422430
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    1. Edward K. Y. Chen, 1983. "Multinational Corporations, Technology and Employment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-06106-8.
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