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Foreign direct investment spillovers within and between sectors: Evidence from Hungarian data

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  • K. SCHOORS

    ()

  • B. VAN DER TOL

Abstract

This article analyses how FDI influences labour productivity of domestic firms in Hungary. We find that foreign firms perform better than local firms. The presence of foreign firms has a positive spillover effect on labour productivity of local firms in the same sector, specifically in very open manufacturing sectors. Spillover effects between sectors are found to be relatively more important than spillover effects within sectors. Foreign investment in user sectors has a positive spillover effect on local suppliers, while the opposite holds for foreign investment in supplier sectors. Absorption and openness play a significant role in these spillover effects.

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File URL: http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_02_157.pdf
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Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 02/157.

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Length: 36 pages
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:rug:rugwps:02/157

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Keywords: Foreign direct investment; sectoral spillover; intersectoral spillover;

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