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Multinational Corporations as a Vehicle for Productivity Spillovers in Turkey


  • Erol Taymaz
  • Aykut Lenger


This paper examines the role of multinational corporations (MNCs) as the creator and diffuser of new and superior technologies. If these firms fulfil this attributed role, then they are expected to generate some spillovers to domestic industries in host economies. Theoretical and empirical studies propose that domestic technological capability is also important in this process. Our study addresses the question of productivity spillovers from the activity of MNCs, whether size of the recipient firms and the R&D intensity matter in this respect, and do spillovers change by time. The analysis utilizes a longitudinal data for the Turkish manufacturing industry in 28 3- digit level industries over the 1983-2000 period. Our results suggest that the spillovers from MNCs for the domestic sector of the Turkish manufacturing industry differentiate with respect to size of the recipient domestic firms and by time. Despite that, the evidence tends to speak in favor of negative spillovers in the Turkish manufacturing industry.

Suggested Citation

  • Erol Taymaz & Aykut Lenger, 2004. "Multinational Corporations as a Vehicle for Productivity Spillovers in Turkey," DRUID Working Papers 04-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:04-09

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    References listed on IDEAS

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    Cited by:

    1. Burcu Türkcan & A. Aysen Kaya, 2011. "Internationalization of Research and Development Activities: Case of European Countries And Turkey," Working Papers 1101, Ege University, Department of Economics.
    2. Elif Bascavusoglu-Moreau & Mustafa Colakoglu, 2011. "Impact of SME policies on innovation capabilities: The Turkish case," STPS Working Papers 1105, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2011.
    3. Ahmed, Riaz, 2016. "Social infrastructure and productivity of manufacturing firms: Evidence from Pakistan," ZEW Discussion Papers 16-038, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Annika Bergman, 2006. "FDI and Spillover Effects in the Indian Pharmaceutical Industry," Finance Working Papers 22084, East Asian Bureau of Economic Research.

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    Productivity spillovers; Multinational Corporations; Turkey.;

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