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Firm heterogeneity and development: A meta-analysis of FDI productivity spillovers

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  • Anagaw Derseh Mebratie
  • Peter A. G. van Bergeijk

Abstract

We analyse the rich literature on FDI spillovers analysing econometric studies published over 1983-2010 and dealing with national studies in 30 developing countries and emerging markets. We find that these studies ignore two sources of heterogeneity: exports and - especially - R&D. Our meta-analysis corrects for differences in research design (including regional effects, sample size and level of aggregation). We observe positive and significant effects for heterogeneity in terms of labour quality, size and export. This robustness contrasts with contradictory findings for foreign ownership where 63% of the coefficients are insignificant or negative.

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  • Anagaw Derseh Mebratie & Peter A. G. van Bergeijk, 2013. "Firm heterogeneity and development: A meta-analysis of FDI productivity spillovers," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(1), pages 53-74, February.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:53-74
    DOI: 10.1080/09638199.2013.745281
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    4. Jianhua Duan & Kuntal K. Das & Laura Meriluoto & W. Robert Reed, 2019. "Spillovers and Exports: A Meta-Analysis," Working Papers in Economics 19/19, University of Canterbury, Department of Economics and Finance.
    5. Zélity, Balázs, 2022. "The welfare effects of FDI: A quantitative analysis," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 293-320.
    6. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
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    8. van Bergeijk, P.A.G., 2012. "Where the financial and economic crisis does bite : Impact on the Least Developed Countries," ISS Working Papers - General Series 542, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    9. Iwasaki, Ichiro & Tokunaga, Masahiro, 2016. "Technology transfer and spillovers from FDI in transition economies: A meta-analysis," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1086-1114.
    10. Ramstetter, Eric D. & Narjoko, Dionisius, 2013. "Foreign Ownership, State Ownership and Energy Efficiency in Indonesia's Private Manufacturing Plants," AGI Working Paper Series 2013-17, Asian Growth Research Institute.
    11. Joshua Akinlolu Olayinka & Sirinuch Loykulnanta, 2019. "How Domestic Firms Benefit from the Presence of Multinational Enterprises: Evidence from Indonesia and Philippines," Economies, MDPI, vol. 7(3), pages 1-14, September.
    12. Ramstetter, Eric D. & Kohpaiboon, Archanun, 2013. "Foreign Ownership and Energy Efficiency in Thailand’s Local Manufacturing Plants," AGI Working Paper Series 2013-15, Asian Growth Research Institute.
    13. Ugur, Mehmet & Churchill, Sefa Awaworyi & Luong, Hoang M., 2020. "What do we know about R&D spillovers and productivity? Meta-analysis evidence on heterogeneity and statistical power," Research Policy, Elsevier, vol. 49(1).
    14. Shi He, 2019. "In Search of Determinants of FDI Forward Spillovers A Meta-Analysis," Current Research in Agricultural Sciences, Conscientia Beam, vol. 7(1), pages 10-19.
    15. Selwyn J. V. Moons & Peter A. G. Bergeijk, 2017. "Does Economic Diplomacy Work? A Meta-analysis of Its Impact on Trade and Investment," The World Economy, Wiley Blackwell, vol. 40(2), pages 336-368, February.
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