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An Econometric Study of Estonia and Slovenia: The Effect of FDI on Labour Productivity

In: Technology Transfer via Foreign Direct Investment in Central and Eastern Europe

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  • Pritt Vahter

Abstract

The aim of Chapter 6 is to study the effects of FDI on labour productivity in Estonia and Slovenia in the of manufacturing sector. This selection of countries allows the analysis to use firm-level panel data at a level of aggregation and scope rarely accessible even in Western economies: the research is based on firm-level panel data of the manufacturing industries of Estonia and Slovenia from the second part of the 1990s until 2001. The analysis studies the correlation between foreign equity participation in the firm and the firm’s own productivity — i.e. the ‘own-firm’ effect in the terminological tradition of Aitken and Harrison (1999). This helps to provides the answer as to whether there exist intra-industry (within the same sector) spillovers from foreign affiliates to firms with no FDI and to other foreign affiliates in these two countries.

Suggested Citation

  • Pritt Vahter, 2006. "An Econometric Study of Estonia and Slovenia: The Effect of FDI on Labour Productivity," Studies in Economic Transition, in: Johannes Stephan (ed.), Technology Transfer via Foreign Direct Investment in Central and Eastern Europe, chapter 6, pages 96-125, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-52448-4_6
    DOI: 10.1057/9780230524484_6
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    Cited by:

    1. Ruifa Hu & Changxin Yu & Yanhong Jin & Carl Pray & Haiyan Deng, 2022. "Impact of Government Policies on Research and Development (R&D) Investment, Innovation, and Productivity: Evidence from Pesticide Firms in China," Agriculture, MDPI, vol. 12(5), pages 1-16, May.

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