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FDI Contribution to Technical Efficiency in the Tunisian Manufacturing Sector: Evidence from Micro-panel Data

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Listed author(s):
  • Sofiane Ghali
  • Sami Rezgui

Abstract

This paper investigates the contribution of FDI to firms' technical efficiency based on a two-stage empirical method. Using panel data for 674 firms belonging to the Tunisian manufacturing sector and observed over the period 1997-2001, a bootstrap procedure is applied to correct for serial correlation affecting DEA technical efficiency scores estimated in a first stage. Results obtained from second-stage regressions show that FDI presence at the firm level has a positive effect on its technical efficiency. However, horizontal FDI spillovers are not evidenced while sectoral export activity represents a potential source of technology spillovers for local firms.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10168737.2010.504215
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Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 25 (2011)
Issue (Month): 2 ()
Pages: 319-339

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Handle: RePEc:taf:intecj:v:25:y:2011:i:2:p:319-339
DOI: 10.1080/10168737.2010.504215
Contact details of provider: Web page: http://www.tandfonline.com/RIEJ20

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Keywords: FDI; technical efficiency; technology spillovers; two-stage estimation; bootstrap;

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Cited by:

  1. Anagaw Derseh Mebratie & Arjun S. Bedi, 2013. "Foreign direct investment, black economic empowerment and labour productivity in South Africa," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(1), pages 103-128, February.

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