FDI spillovers and time since foreign entry

Arbeitspapier

This study measures the effect of foreign direct investment (FDI) on the productivity of local firms. Unlike earlier studies, our empirical approach does not require that FDI manifests immediate or permanent effects. We find that foreign entry initially affects productivity of local competitors negatively, but is more than offset by a permanent positive effect on local competitors once majority-foreign-owned firms have been present for a while. The effect on the productivity of local suppliers, in contrast, is transient. The entry of majority-foreign-owned firms boosts productivity of local suppliers after a short adaption period, but then fades. The positive impact of minority-foreign-owned firms on local suppliers is immediate, but smaller and transient.

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• ISBN: 978-952-6699-46-2
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 27/2013

Classification and Topics

• Classification: Wirtschaft
• Subject: FDI ; spillovers ; dynamics ; timing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Merlevede, Bruno ; Schoors, Koen ; Spatareanu, Mariana
• Event: Veröffentlichung
• (who): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (where): Helsinki
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/212782