Arbeitspapier

FDI Spillovers and the Timing of Foreign Entry

This study analyzes the dynamic effect of FDI on local firms' productivity by relaxing the standard implicit assumption that technological spillovers are immediate and pfirmanent. We find that the entry of majority foreign owned firms has a short run negative effect on the productivity of local competitors, which is more than offset by a longer run positive effect. The entry of minority foreign owned firms has an immediate, though short-lived, positive effect on local suppliers through backward linkages. The entry of majority foreign owned firms also improves the productivity of local suppliers, but the effect materializes later and lasts longer.

Language
Englisch

Bibliographic citation
Series: LICOS Discussion Paper ; No. 267

Classification
Wirtschaft
Subject
FDI
spillovers
dynamics
timing
Direktinvestition
Zeit
Spillover-Effekt
Produktivität
Verarbeitendes Gewerbe
Rumänien

Event
Geistige Schöpfung
(who)
Merlevede, Bruno
Schoors, Koen
Spatareanu, Mariana
Event
Veröffentlichung
(who)
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance
(where)
Leuven
(when)
2010

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Merlevede, Bruno
  • Schoors, Koen
  • Spatareanu, Mariana
  • Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance

Time of origin

  • 2010

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