Technology spillovers from external investors in East Germany: no overall effects in favor of domestic firms
AbstractThe study deals with the question whether external (foreign and West German) investors in East Germany induce technological spillover effects in favor of domestic firms. It ties in with a number of other econometric spillover studies, especially for transition economies, which show rather mixed and inconclusive results so far. Different from existing spillover analyses, this study allows for a much deeper regional breakdown up to Raumordnungsregionen and uses a branch classification that explicitly considers intermediate and investment good linkages. The regression results show no positive correlation between the presence of external investors and domestic firms’ productivity, no matter which regional breakdown is looked at (East Germany as a whole, federal states, or Raumordnungsregionen). Technology spillovers which may exist in particular cases are obviously not strong enough to increase the domestic firms’ overall productivity.
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 InfoPaper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 198.
Date of creation: Dec 2004
Date of revision:
East Germany; foreign direct investment; technology spillovers; innovation; productivity;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-04 (All new papers)
- NEP-INO-2005-10-04 (Innovation)
- NEP-TID-2005-10-04 (Technology & Industrial Dynamics)
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.:
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 259-276, July.
- Giovanni Peri & Dieter Urban, 2002.
"The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany,"
Development Working Papers
164, Centro Studi Luca d\'Agliano, University of Milano.
- Peri, Giovanni & Urban, Dieter, 2002. "The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany," Working Papers 03-1, University of California at Davis, Department of Economics.
- Giovanni Peri & Dieter M. Urban, 2003. "The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany," Working Papers 31, University of California, Davis, Department of Economics.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Blomström, Magnus & Kokko, Ari, 1996.
"Multinational Corporations and Spillovers,"
CEPR Discussion Papers
1365, C.E.P.R. Discussion Papers.
- Joachim Ragnitz, 2013. "Konvergenz von Wirtschaftsräumen – Eine Illusion?," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, vol. 20(01), pages 03-04, 02.
- Gabor Hunya, 2002. "Recent Impacts of Foreign Direct Investment on Growth and Restructuring in Central European Transition Countries," wiiw Research Reports 284, The Vienna Institute for International Economic Studies, wiiw.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hubert Gabrisch).
If references are entirely missing, you can add them using this form.