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FDI Spillovers: Evidence from the British Retail Sector

Author

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  • Dolores Anon Higon
  • Nicholas Vasilakos

Abstract

This paper discusses the impact of foreign-ownership presence on the productivity performance of British-owned domestic retailers. In particular, we analyse the existence of productivity spillovers, in the form of knowledge transfer, by using establishment-level data from the Annual Respondents Dataset over the period 1997-2003. The results confirm the presence of such spillovers and highlight their positive and significant impact on the productivity of domestic firms, though these spillovers are mostly confined to the region in which foreign subsidiaries locate. There is also evidence that the productivity benefit from regional FDI spillovers increases with the absorptive capacity of domestic retailers.

Suggested Citation

  • Dolores Anon Higon & Nicholas Vasilakos, 2010. "FDI Spillovers: Evidence from the British Retail Sector," Discussion Papers 10-23, Department of Economics, University of Birmingham.
  • Handle: RePEc:bir:birmec:10-23
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    More about this item

    Keywords

    FDI; Multinationals; Productivity; Retailing; Spillovers;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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