According to the main economic literature, foreign direct investment (FDI) from Multinational Enterprises (MNEs) can generate positive externalities to host countries, increasing the domestic firms productivity. Recently, the attention of researchers has moved from the analysis of ''horizontal'' spillovers i.e. those benefits to local enterprises at an intraindustrial level - towards the investigation of ''vertical'' spillovers phenomenon i.e. the diffusion of positive effects on domestic economies at an inter-industry level. In this paper we investigate the presence of both these two kinds of spillovers using a firm-level panel data of domestic and foreign firms in the Italian manufacturing sector. The results show the lack of ''horizontal'' spillovers and, at the same time, the presence of ''vertical'' ones.
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Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number
23-2005.
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Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2007.
"FDI Spillovers at Regional Level: Evidence from Portugal,"
Working Papers
2007/28, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
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