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Exporting and foreign direct investment spillovers: Cambodia's experience


  • Ung, Luyna
  • Chhair, Sokty


One feature of exporting firms in Cambodia is that they are not of domestic origin but are foreign firms that export from the moment they are established in Cambodia. In this paper we examine the extent to which the presence of foreign-owned export firms impacts on the productivity of domestic firms. We consider two channels: first, the extent to which exportinduced improvements in the legal and institutional framework has led to productivity improvements for non-exporting firms, and second the extent to which horizontal spillovers from foreign-owned firm’s impact on the productivity of domestic firms. We find that relieving institutional constraints for export firms has positive impacts on the productivity of all firms, including non-export firms, and that there are negative productivity spillovers from foreignowned to domestic firms.

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  • Ung, Luyna & Chhair, Sokty, 2014. "Exporting and foreign direct investment spillovers: Cambodia's experience," WIDER Working Paper Series 079, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2014-079

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    References listed on IDEAS

    1. Kugler, Maurice, 2006. "Spillovers from foreign direct investment: Within or between industries?," Journal of Development Economics, Elsevier, vol. 80(2), pages 444-477, August.
    2. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    3. Arne Bigsten & Mulu Gebreeyesus, 2009. "Firm Productivity and Exports: Evidence from Ethiopian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1594-1614.
    4. repec:oup:jafrec:v:26:y:2017:i:1:p:93-118. is not listed on IDEAS
    5. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Soderbom & Francis Teal & Albert Zeu, 2004. "Do African Manufacturing Firms Learn from Exporting?," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 115-141.
    6. Slocomb, Margaret, 2010. "An Economic History of Cambodia in the Twentieth Century," University of Chicago Press Economics Books, University of Chicago Press, number 9789971694999, February.
    7. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    8. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    9. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
    10. Antonio Cruz & Carol Newman & John Rand & Finn Tarp, 2017. "Learning by Exporting: The Case of Mozambican Manufacturing," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 26(1), pages 93-118.
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    exports; foreign direct investment; institutional constraints; spillovers; Cambodia;

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