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Do Multinational Enterprises Affect Domestic Firms Productivity?

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  • Filippo Reganati

    () (Dipartimento di Scienze Economiche, Matematiche e Statistiche - Facoltà di Economia - Università degli Studi di Foggia (Italy).)

  • Cesare Imbriani

Abstract

This work examines the main theoretical and empirical interpretations of the effects of FDI on the productivity of local firms and, in particular, the way in which productivity spillovers are related to regional differences. In studying the Italian manufacturing sector, using cross-sectional data, we found that the stronger presence of multinational enterprises increased the level of domestic productivity, but productivity spillovers were concentrated only in the north-western area of Italy. This indicates not only the existence of a geographic component in the spillovers from FDI but also the peculiarity of Italian manufacturing structure, where different models of production, such as the network enterprise model in the North-west, the industrial district model in the North-east and the backward model in the South, coexists.

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Bibliographic Info

Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number fr_se_2002.

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Length: pages 14
Date of creation: Oct 2002
Date of revision:
Publication status: Published in Studi Economici, nn. 78, 2002.
Handle: RePEc:ufg:qdsems:fr_se_2002

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Keywords: foreign direct investment; productivity spillovers.;

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