Foreign Direct Investment and Knowledge Diffusion in Poor Locations

Arbeitspapier

We use a plant level survey to identify interactions between domestic plants and foreign direct investment (FDI) in Ethiopia's manufacturing sector. Almost one third of Ethiopian plants report being linked to FDI through labor sharing, forward and backward linkages and competition in input and output markets. Domestic plant managers report that through these linkages with FDI, they learn about production processes, managerial and organizational practices and exporting. We quantify the spillovers from FDI at the local level by comparing changes in total factor productivity (TFP) among domestic plants in districts where a large greenfield foreign plant produced and districts where FDI in the same industry and around the same time was licensed but not yet operational. Over the four years starting with the year of the FDI opening, the TFP of domestic plants is 11 percent higher in treated districts, employment in these domestic plants increases and new domestic plants open.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CReAM Discussion Paper Series ; No. 13/19

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Investment; Long-term Capital Movements ; General Regional Economics (includes Regional Data) ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Thema: Foreign Direct Investment ; productivity ; localized knowledge spillovers ; plant-to-plant labor mobility

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Abebe, Girum ; McMillan, Margaret ; Serafinelli, Michel
• Ereignis: Veröffentlichung
• (wer): Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
• (wo): London
• (wann): 2019

Weitere Informationen

• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ