Productivity Spillovers and Multinational Enterprises: in Search of a Spatial Dimension
AbstractIn this paper we analyse whether and to what extent MNEs can generate positive externalities for the host economies by allowing for spatial dependence patterns in TFP growth rates at sectoral and regional level. In order to achieve this research objective we use spatial econometric techniques, which allow us to identify not only the type of spatial dependence governing this phenomenon and to estimate it consistently, but also clusters and other “anomalies” in the patterns of productivity spillovers. There has been, at least in our knowledge, no spatial econometric study on the impact of MNEs on aggregate TFP; therefore, we aim at filling this gap. We found evidence of positive spillovers from MNEs operating in the region, and negative spillovers from MNEs outside the region. The latter are however limited to specific groups of regions, such as the capital regions and regions bordering with former EU-15 countries. Therefore, we can conclude that there seems to be a regional channel for FDI spillovers.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number DYNREG10.
Length: 27 pages
Date of creation: 2007
Date of revision:
Note: DYNREG Research Project – Dynamic Regions in a Knowledge-Driven Global Economy: Lessons and Policy Implications for the European Union
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DYNREG; foreign direct investment; productivity growth; spatial spillovers;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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