Foreign Direct Investment, Host Country Productivity And Export: The Case Of U.S. And Japanese Multinational Affiliates
The literature on the transfer of technology from FDI to host country firms is growing rapidly. Most of the studies find that there are positive spillover effects from FDI flow to host country firms in advanced economies. The result for the case of FDI recipient developing economies is mixed. The purpose of this study is to analyze the role that foreign direct investment from the U.S. and Japan plays in affecting developing countries¡¯ productivity, and export. Trade and production dataset by industrial groups and disaggregated U.S. and Japanese FDI data are used to empirically test presence of spillover effects on labor productivity and export. The results of the study show that positive productivity effects from U.S. and Japanese FDI firms are not empirically supported for the case of sample developing countries. The presence of FDI firms from all source countries and the number of U.S. total FDI and U.S. manufacturing FDI firms increase exports of host countries to the rest of the world. On the other hand, productivity is enhanced by foreign portfolio investment, availability of skilled manpower, capital intensity of industries and the number of bilateral investment treaties signed by host countries. Official development assistance and official aid have significantly negative effect on host country productivity, value added and export.
Volume (Year): 29 (2004)
Issue (Month): 1 (June)
|Contact details of provider:|| Web page: http://www.jed.or.kr/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Manuel Agosin & Roberto Machado, 2005.
"Foreign Investment in Developing Countries: Does it Crowd in Domestic Investment?,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 33(2), pages 149-162.
- Manuel R. AGOSIN & Ricardo MAYER, 2000. "Foreign Investment In Developing Countries, Does It Crowd In Domestic Investment?," UNCTAD Discussion Papers 146, United Nations Conference on Trade and Development.
- Jonathan Eaton & Akiko Tamura, 1996.
"Japanese and U.S. Exports and Investment as Conduits of Growth,"
in: Financial Deregulation and Integration in East Asia, NBER-EASE Volume 5, pages 51-75
National Bureau of Economic Research, Inc.
- Jonathan Eaton & Akiko Tamura, 1996. "Japanese and U.S. Exports and Investment as Conduits of Growth," NBER Working Papers 5457, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Akiko Tamura, 1995. "Japanese and U.S. Exports and Investment as Conduits of Growth," Boston University - Institute for Economic Development 70, Boston University, Institute for Economic Development.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994.
"Spillovers, Foreign Investment and Export Behavior,"
95-06, Columbia - Graduate School of Business.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
- Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
- Barros, Pedro P & Cabral, Luis, 2000. "Competing for Foreign Direct Investment," Review of International Economics, Wiley Blackwell, vol. 8(2), pages 360-71, May.
- Aditya Bhattacharjea, 2001. "Foreign entry and domestic welfare: lessons for developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(2), pages 143-162.
- Peter Egger & Michael Pfaffermayr, .
"A Note on Labor Productivity and Foreign Inward Direct Investment,"
WIFO Working Papers
- Peter Egger & Michael Pfaffermayr, 2001. "A note on labour productivity and foreign inward direct investment," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 229-232.
When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:29:y:2004:i:1:p:163-187. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Changhui Kang)
If references are entirely missing, you can add them using this form.