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Productivity Spillovers from FDI in the Uruguayan Manufacturing Sector

  • Kokko, Ari

    ()

    (Dept. of Economics, Stockholm School of Economics)

  • Tansini, Ruben
  • Zejan, Mario

    (Dept. of Economics, Stockholm School of Economics)

This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a positive and statistically significant spillover effect only in a sub-sample of locally-owned plants with moderate technology gaps vis-a-vis foreign firms. Our interpretation is that there are firm-specific differences in the ability to absorb spillovers, and that these may explain some of the contradictory findings of earlier spillover studies.

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Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 2.

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Length: 12 pages
Date of creation: Jan 1994
Date of revision:
Publication status: Published in Journal of Development Studies, 1996, pages 602-611
Handle: RePEc:hhs:hastef:0002
Contact details of provider: Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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  1. María Inés Terra & Marcel Vaillant, 1994. "Cambios en el patrón de especialización regional. Viejas ventajas comparativas y nuevas economías de escala," Documentos de Trabajo (working papers) 0894, Department of Economics - dECON.
  2. Rosario Domingo & Héctor Pastori & Tabaré Vera, 1994. "Comportamiento estratégico de las empresas industriales frente a la apertura," Documentos de Trabajo (working papers) 0494, Department of Economics - dECON.
  3. Alvaro Forteza, 1994. "On the Political Economy of the Welfare State," Documentos de Trabajo (working papers) 0594, Department of Economics - dECON.
  4. María Inés Terra & Adriana Gigliotti, 1994. "Mercosur: localización de la producción. Un modelo de geografía económica," Documentos de Trabajo (working papers) 0794, Department of Economics - dECON.
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