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The Role of Exports in the Transmission of Horizontal and Vertical Spillovers of Foreign Direct Investment: The Case of Turkish Manufacturing Industry

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  • Felor Ebghaei
  • Arzu Akkoyunlu Wigley

Abstract

This study examines the role of exports in the transmission of horizontal and vertical spillovers of foreign direct investment for the Turkish manufacturing industry by using firm†level data. Our objective is to test whether the export capacity of firms is one of the determinants of the occurrence of the horizontal and vertical spillovers generated by foreign direct investment. In order to determine whether the productivity effects arising from horizontal and vertical (backward and forward) spillovers are conditioned by the exports of firms, value added and total factor productivity equations for Turkish manufacturing industry firms for the years 2003–11 are estimated using the panel data method. Our estimation results show that the productivity effects generated by horizontal, backward, and forward spillovers of foreign direct investment are more pronounced for export†oriented firms.

Suggested Citation

  • Felor Ebghaei & Arzu Akkoyunlu Wigley, 2018. "The Role of Exports in the Transmission of Horizontal and Vertical Spillovers of Foreign Direct Investment: The Case of Turkish Manufacturing Industry," The Developing Economies, Institute of Developing Economies, vol. 56(1), pages 35-50, March.
    • Handle: RePEc:bla:deveco:v:56:y:2018:i:1:p:35-50
    DOI: 10.1111/deve.12158
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    Cited by:

    1. Yue Jin & Chen Chen & Zhanyi Shi, 2021. "Spillover Effect of FDI on Food Exports: Based on Firm-Level Analysis in China," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    2. Moralles, Herick Fernando & Moreno, Rosina, 2020. "FDI productivity spillovers and absorptive capacity in Brazilian firms: A threshold regression analysis," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 257-272.
    3. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.

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