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Productivity Spillovers and Multinational Enterprises: in Search of a Spatial Dimension

Author

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  • Resmini, Laura

    (University Luigi Bocconi, Milan)

  • Nicolini, Marcella

    (University Luigi Bocconi, Milan)

Abstract

In this paper we analyse whether and to what extent MNEs can generate positive externalities for the host economies by allowing for spatial dependence patterns in TFP growth rates at sectoral and regional level. In order to achieve this research objective we use spatial econometric techniques, which allow us to identify not only the type of spatial dependence governing this phenomenon and to estimate it consistently, but also clusters and other “anomalies” in the patterns of productivity spillovers. There has been, at least in our knowledge, no spatial econometric study on the impact of MNEs on aggregate TFP; therefore, we aim at filling this gap. We found evidence of positive spillovers from MNEs operating in the region, and negative spillovers from MNEs outside the region. The latter are however limited to specific groups of regions, such as the capital regions and regions bordering with former EU-15 countries. Therefore, we can conclude that there seems to be a regional channel for FDI spillovers.

Suggested Citation

  • Resmini, Laura & Nicolini, Marcella, 2007. "Productivity Spillovers and Multinational Enterprises: in Search of a Spatial Dimension," Papers DYNREG10, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:dynreg10
    Note: DYNREG Research Project – Dynamic Regions in a Knowledge-Driven Global Economy: Lessons and Policy Implications for the European Union
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    References listed on IDEAS

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    Cited by:

    1. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Publications - Reports 18613, The World Bank Group.
    2. World Bank, 2014. "Malaysia Economic Monitor, June 2014 : Boosting Trade Competitiveness," World Bank Publications - Reports 19303, The World Bank Group.
    3. Deborah Winkler & Thomas Farole, 2015. "Global Value Chain Integration and Productivity," World Bank Publications - Reports 23818, The World Bank Group.
    4. Deborah Winkler, 2018. "Potential and Actual FDI Spillovers in Global Value Chains The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(10), pages 5-44, December.
    5. Xu ZHANG, 2013. "Firms’ Location Choices in Guangdong," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(11), pages 1414-1434, November.
    6. Sizhong Sun & Ligang Song & Peter Drysdale, 2011. "The Role of Geographical Proximity in FDI Productivity Spillovers in China," Chapters, in: Lilai Xu (ed.), China’s Economy in the Post-WTO Environment, chapter 7, Edward Elgar Publishing.
    7. Thomas Farole & Deborah Winkler, 2015. "The Role of Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework for FDI Spillovers," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(3), pages 77-112, May.
    8. Nuno CRESPO & Isabel PROENÇA & Maria Paula FONTOURA, 2012. "The Spatial Dimension in FDI Spillovers: Evidence at the Regional Level from Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 115-130.
    9. Vujanović, Nina & Stojčić, Nebojša & Hashi, Iraj, 2021. "FDI spillovers and firm productivity during crisis: Empirical evidence from transition economies," Economic Systems, Elsevier, vol. 45(2).
    10. Tanaka, Kiyoyasu & Hashiguchi, Yoshihiro, 2012. "Spatial spillovers from FDI agglomeration : evidence from the Yangtze River Delta in China," IDE Discussion Papers 354, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    11. Tomas Havranek & Zuzana Irsova, 2012. "Survey Article: Publication Bias in the Literature on Foreign Direct Investment Spillovers," Journal of Development Studies, Taylor & Francis Journals, vol. 48(10), pages 1375-1396, October.

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    More about this item

    Keywords

    DYNREG; foreign direct investment; productivity growth; spatial spillovers;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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