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Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis

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  • Iršová, Zuzana
  • Havránek, Tomáš

Abstract

The voluminous empirical research on horizontal productivity spillovers from foreign investors to domestic firms has yielded mixed results. In this paper we collect 1,205 estimates of spillovers and examine which factors influence spillover magnitude. Our results suggest that horizontal spillovers are on average zero, but that their sign and magnitude depend systematically on the characteristics of the domestic economy and foreign investors. Foreign investors who form joint ventures with domestic firms and who come from countries with a modest technology edge create the largest benefits for the domestic economy.

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  • Iršová, Zuzana & Havránek, Tomáš, 2013. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," World Development, Elsevier, vol. 42(C), pages 1-15.
    • Handle: RePEc:eee:wdevel:v:42:y:2013:i:c:p:1-15
    DOI: 10.1016/j.worlddev.2012.07.001
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    Keywords

    Bayesian model averaging; foreign direct investment; productivity spillovers; determinants; meta-analysis;

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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