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

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Listed author(s):
  • 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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File URL: http://www.sciencedirect.com/science/article/pii/S0305750X12001908
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Article provided by Elsevier in its journal World Development.

Volume (Year): 42 (2013)
Issue (Month): C ()
Pages: 1-15

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Handle: RePEc:eee:wdevel:v:42:y:2013:i:c:p:1-15
DOI: 10.1016/j.worlddev.2012.07.001
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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

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Find related papers by 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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