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The Technology and Knowledge Spillover Effects of FDI on Labour Productivity

Author

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  • Norhanishah Mohamad Yunus

    (School of Distance Education, Universiti Sains Malaysia, Malaysia Author-2-Name: Noraida Abdul Wahob Author-2-Workplace-Name: Unit Peneraju Agenda Bumiputera, Prime Minister's Department,47810, Petaling Jaya, Selangor, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - The purpose of this study is to investigate both "technology" and "knowledge" effects of foreign direct investment (FDI) on labour productivity in the medium-high manufacturing industries' classification in Malaysia. Methodology/Technique - This study employs a Seemingly Unrelated Regression (SUR) estimator. Findings - The results conclude that diffusion of knowledge, which increases labour productivity, is greater via "learning effects" as compared to the investor countries' capital investments in the medium-high manufacturing industries. Novelty - This study expands the body of knowledge about the benefits of FDI spillovers on labour productivity according to specific investor countries, however, are rarely researched particularly in developing countries and at the industry level. Type of Paper - Empirical.

Suggested Citation

  • Norhanishah Mohamad Yunus, 2021. "The Technology and Knowledge Spillover Effects of FDI on Labour Productivity," GATR Journals jber199, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber199
    DOI: https://doi.org/10.35609/jber.2021.5.4(5)
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    References listed on IDEAS

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    1. Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
    2. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    3. Norhanishah Mohamad Yunus, 2020. "Determinants of Foreign Direct Investment: An Analysis on Policy Variables in the Malaysian Manufacturing Industry," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(12), pages 746-760.
    4. Norhanishah Mohamad Yunus, 2020. "Determinants of Foreign Direct Investment: An Analysis on Policy Variables in the Malaysian Manufacturing Industry," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(12), pages 746-760, December.
    5. Slavo Radosevic & Andrew Roziek, 2005. "Foreign Direct Investment and Restructuring in the Automotive Industry in Central and East Europe," UCL SSEES Economics and Business working paper series 53, UCL School of Slavonic and East European Studies (SSEES).
    6. Davide Castellani & Antonello Zanfei, 2003. "Technology gaps, absorptive capacity and the impact of inward investments on productivity of European firms ," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 555-576.
    7. Norhanishah Mohamad Yunus & Tajul Ariffin Masron, 2020. "Spillover Effects of Inward Foreign Direct Investment on Labour Productivity: An Analysis on Skill Composition in Manufacturing Industry," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(10), pages 593-611, October.
    8. Matthew J. Slaughter, 2002. "Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?," OECD Development Centre Working Papers 192, OECD Publishing.
    9. Norhanishah Mohamad Yunus & Tajul Ariffin Masron, 2020. "Spillover Effects of Inward Foreign Direct Investment on Labour Productivity: An Analysis on Skill Composition in Manufacturing Industry," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(10), pages 593-611.
    10. Matthew J. Slaughter, 2002. "Does Inward Foreign Direct Investment Contribute to Skill Upgrading in Developing Countries?," SCEPA working paper series. 2002-08, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
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    More about this item

    Keywords

    Foreign Direct Investment; Labour Productivity; Technology Spillovers; Knowledge Spillovers;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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