IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v49y2015i10p1639-1653.html

Productivity Spillovers from Foreign Multinational Enterprises to Domestic Manufacturing Firms: To What Extent Does Spatial Proximity Matter?

Author

Listed:
  • Sergio Mariotti
  • Marco Mutinelli
  • Marcella Nicolini
  • Lucia Piscitello

Abstract

M ariotti S., M utinelli M., N icolini M. and P iscitello L. Productivity spillovers from foreign multinational enterprises to domestic manufacturing firms: to what extent does spatial proximity matter?, Regional Studies . This paper analyses the role of spatial proximity in productivity spillovers from foreign multinational enterprises (MNEs). Using a database of foreign affiliates located in Italy from 1999 to 2005, it is shown that local firms benefit from the presence of MNEs through both backward and forward linkages. It is found that: (1) spillover effects are more strongly associated with MNEs in knowledge-intensive business services and utilities; and (2) co-location positively affects productivity spillovers, and the effect is stronger for foreign affiliates that are distantly located. This is especially true in the service sector due to the role of temporary spatial proximity and other dimensions of proximity.

Suggested Citation

  • Sergio Mariotti & Marco Mutinelli & Marcella Nicolini & Lucia Piscitello, 2015. "Productivity Spillovers from Foreign Multinational Enterprises to Domestic Manufacturing Firms: To What Extent Does Spatial Proximity Matter?," Regional Studies, Taylor & Francis Journals, vol. 49(10), pages 1639-1653, October.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:10:p:1639-1653
    DOI: 10.1080/00343404.2013.867428
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2013.867428
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2013.867428?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Joze P. Damijan & Mark Knell & Boris Majcen & Matija Rojec, 2003. "Technology Transfer through FDI in Top-10 Transition Countries: How Important are Direct Effects, Horizontal and Vertical Spillovers?," William Davidson Institute Working Papers Series 549, William Davidson Institute at the University of Michigan.
    2. Emanuele Forlani, 2010. "Competition in the Service Sector and the Performances of Manufacturing Firms: Does Liberalization Matter?," CESifo Working Paper Series 2942, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hyojung Kang & Jorge Martinez‐Vazquez, 2022. "When does foreign direct investment lead to inclusive growth?," The World Economy, Wiley Blackwell, vol. 45(8), pages 2394-2427, August.
    2. Wu, Tuolei & Yan, Na & Wang, Jingxian & Chen, Jieping, 2024. "Industry spillover effects of robot applications on labor productivity: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1272-1286.
    3. Bruno Merlevede & Victoria Purice, 2014. "Distance, Time since Foreign Entry, and Knowledge Spillovers from Foreign Direct Investment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/896, Ghent University, Faculty of Economics and Business Administration.
    4. Freyburg, Tina & Garbe, Lisa & Wavre, Véronique, 2022. "The political power of internet business: A comprehensive dataset of Telecommunications Ownership and Control (TOSCO)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Online fi, pages 1-1.
    5. René Belderbos & Davide Castellani & Helen S. Du & Geon Ho Lee, 2024. "Internal versus external agglomeration advantages in investment location choice: The role of global cities’ international connectivity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(6), pages 745-763, August.
    6. Völlmecke, Dominik & Jindra, Björn & Marek, Philipp, 2016. "FDI, human capital and income convergence—Evidence for European regions," Economic Systems, Elsevier, vol. 40(2), pages 288-307.
    7. Tina Freyburg & Lisa Garbe & Véronique Wavre, 2023. "The political power of internet business: A comprehensive dataset of Telecommunications Ownership and Control (TOSCO)," The Review of International Organizations, Springer, vol. 18(3), pages 573-600, July.
    8. Liis Roosaar & Urmas Varblane & Jaan Masso, 2020. "Productivity Gains From Labour Churning In Economic Crisis: Do Foreign Firms Gain More?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 125, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    9. Hien T. N. Huynh & Phuong V. Nguyen & Hoa D. X. Trieu & Khoa T. Tran, 2021. "Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 59-75, January.
    10. Nguyen, Hang T. T., 2026. "The productivity paradox of corporate taxation: A nonlinear tale of growth and constraints," arqus Discussion Papers in Quantitative Tax Research 310, arqus - Arbeitskreis Quantitative Steuerlehre.
    11. Barak S. Aharonson & Suleika Bort & Michael Woywode, 2020. "The Influence of Multinational Corporations on International Alliance Formation Behavior of Colocated Start-Ups," Organization Science, INFORMS, vol. 31(3), pages 770-795, May.
    12. Imran Shah & Linyu He & Richard Hatfield & Mohamed Haroon, 2020. "Outward FDI: National and Regional Policy Implications for Technology Innovation," Department of Economics Working Papers 77/20, University of Bath, Department of Economics.
    13. Katiuscia Lavoratori & Davide Castellani, 2021. "Too close for comfort? Microgeography of agglomeration economies in the United Kingdom," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1002-1028, November.
    14. Jacob, Jojo & Sasso, Simone, 2015. "Foreign direct investment and technology spillovers in low and middle-income countries: A comparative cross-sectoral analysis," MERIT Working Papers 2015-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Dalila Ribaudo, 2023. "Tracking the Van: The role of forward linkages in logistics MNEs' location choices across European NUTS 3 regions," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 331-362, April.
    16. Orlic, Edvard & Hashi, Iraj & Hisarciklilar, Mehtap, 2018. "Cross sectoral FDI spillovers and their impact on manufacturing productivity," International Business Review, Elsevier, vol. 27(4), pages 777-796.
    17. Bournakis, Ioannis & Papanastassiou, Marina & Pitelis, Christos, 2015. "Regional Growth and Convergence in the UK: the Role of MNE Subsidiaries and Domestic Firms," MPRA Paper 68090, University Library of Munich, Germany.
    18. Naveen Rai & Lena Suchanek & Maria Bernier, 2018. "Does Outward Foreign Investment Matter for Canadian Productivity? Evidence from Greenfield Investments," Staff Working Papers 18-31, Bank of Canada.
    19. Hu, Yong & Fisher-Vanden, Karen & Su, Baozhong, 2020. "Technological spillover through industrial and regional linkages: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 523-545.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Damijan, Jože & Kostevc, Črt & Marek, Philipp & Rojec, Matija, 2015. "Do Manufacturing Firms Benefit from Services FDI? – Evidence from Six New EU Member States," IWH Discussion Papers 5/2015, Halle Institute for Economic Research (IWH).
    2. Ichiro IWASAKI & Satoshi MIZOBATA, 2018. "Post-Privatization Ownership And Firm Performance: A Large Meta-Analysis Of The Transition Literature," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 263-322, June.
    3. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Beverelli, Cosimo & Fiorini, Matteo & Hoekman, Bernard, 2017. "Services trade policy and manufacturing productivity: The role of institutions," Journal of International Economics, Elsevier, vol. 104(C), pages 166-182.
    5. Ichiro Iwasaki & Satoshi Mizobata, 2020. "Ownership Concentration and Firm Performance in European Emerging Economies: A Meta-Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(1), pages 32-67, January.
    6. Krammer, Marius Sorin, 2008. "International R&D spillovers in transition countries: the impact of trade and foreign direct investment," Kiel Advanced Studies Working Papers 446, Kiel Institute for the World Economy.
    7. Anna Iara, 2005. "Regional growth in Hungary - The impact of European economic integration," ERSA conference papers ersa05p342, European Regional Science Association.
    8. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, August.
    9. repec:lic:licosd:33213 is not listed on IDEAS
    10. Damijan, Jože P. & Kostevc, Crt, 2007. "Knowledge Transfer, Innovation and Growth," Papers DYNREG06, Economic and Social Research Institute (ESRI).
    11. Žídek Libor, 2016. "Economic Transformation in Slovenia: From a Model Example to the Default Edge," Review of Economic Perspectives, Sciendo, vol. 16(3), pages 159-186, September.
    12. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 2020. "Multinational enterprises, industrial relatedness and employment in European regions [Innovation: mapping the winds of creative destruction]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    13. Peter, Klara Sabirianova & Svejnar, Jan & Terrell, Katherine, 2004. "Distance to the Efficiency Frontier and FDI Spillovers," IZA Discussion Papers 1332, IZA Network @ LISER.
    14. Iwasaki, Ichiro & Kočenda, Evžen, 2017. "Are some owners better than others in Czech privatized firms? Even meta-analysis can’t make us perfectly sure," Economic Systems, Elsevier, vol. 41(4), pages 537-568.
    15. Barun Deb Pal, 2014. "How Does it Matter to the Economy and Atmosphere in India if Production Frontier of Emission-Intensive Sectors Changes?," Review of Market Integration, India Development Foundation, vol. 6(3), pages 321-350, December.
    16. Hoi Le & Richard Pomfret, 2011. "Technology spillovers from foreign direct investment in Vietnam: horizontal or vertical spillovers?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(2), pages 183-201.
    17. Klara Sabirianova & Jan Svejnar & Katherine Terrell, 2005. "Distance to the Efficiency Frontier and Foreign Direct Investment Spillovers," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 576-586, 04/05.
    18. Santos, Eleonora, 2017. "Assessing the Impact of Foreign Direct Investment on Domestic Manufacturing Firms’ Productivity: A Database for Portugal," MPRA Paper 88959, University Library of Munich, Germany.
    19. Katja Zajc Kej??ar, 2006. "The Role Of Foreign Direct Investment In The Firm Selection Process In A Host Country: Evidence From Slovenia," William Davidson Institute Working Papers Series wp841, William Davidson Institute at the University of Michigan.
    20. Elisa Galeotti, 2009. "Do Domestic Firms Benefit from Geographical Proximity with Foreign Investors? Evidence from the Privatization of the Czech Glass Industry," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(1), pages 026-047, March.
    21. Huu Thanh Tam Nguyen & Nguyen Khac, 2013. "Demand creation and competition effect of Export-platform FDI on backward linkages - Evidence from panel data analysis of Vietnamese supporting industries," Documents de recherche 13-02, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:49:y:2015:i:10:p:1639-1653. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.