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Home versus Host Country Effects of FDI: Searching for New Evidence of Productivity Spillovers

  • Priit Vahter

    ()

  • Jaan Masso

This paper investigates the effects of both inward and outward foreign direct investment (FDI) on productivity in manufacturing and services sectors. The main novelty is the analysis of the spillover effects of outward FDI that may occur outside the investing firms on the rest of the home country. Our results based on panel data from Estonia do not indicate much spillover effects of outward or inward FDI that are robust to different specifications of the estimated model. There is substantial heterogeneity in the findings on spillovers across different specifications of the model or sector studied.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp820.pdf
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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 820.

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Length: pages
Date of creation: 01 Mar 2006
Date of revision:
Handle: RePEc:wdi:papers:2006-820
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