Foreign direct investment and technology spillovers: Which firms really benefit?

2004 ◽  
Vol 140 (2) ◽  
pp. 230-253 ◽  
Author(s):  
Sophia Dimelis ◽  
Helen Louri
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Technology Spillovers

Foreign Direct Investment and Technology Spillovers in the Turkish Manufacturing Industry

2013 ◽  
pp. 30-51 ◽  
Author(s):  
Alper Sönmez ◽  
Mehmet Teoman Pamukçu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Foreign Ownership ◽  
Output Growth ◽  
Foreign Firms ◽  
Technology Spillovers ◽  
Firm Level ◽  
Definition Of ◽  
Local Firms

Technology spillovers from foreign to local firms in emerging economies are considered to be the most important channel through which Foreign Direct Investment (FDI) influences the host economy. Empirical evidence about the existence, magnitude, and direction of FDI-related spillovers in these countries is contradictory, pointing to the necessity of conducting more econometric studies using firm-level data. The authors conduct an econometric analysis to assess the impact of FDI-related horizontal technology spillovers on output growth of local firms in the Turkish manufacturing industry over 2003-2006. When a broad definition of foreign ownership is adopted, their findings suggest that horizontal spillovers occur from foreign to local firms in the sector of activity. Export-oriented firms do not benefit from these spillovers in contrast to firms producing mainly for the local market. However, when foreign ownership is defined according to whether the minority or majority of capital is detained by the foreign partner, horizontal spillovers seem to originate from foreign firms with majority or full foreign ownership, while no such effect is associated with minority-owned foreign firms.

scholarly journals FOREIGN DIRECT INVESTMENT AND TECHNOLOGY SPILLOVER: EVIDENCE ACROSS INDIAN MANUFACTURING INDUSTRIES

2012 ◽  
Vol 57 (02) ◽  
pp. 1250011 ◽  
Author(s):  
SMRUTI RANJAN BEHERA ◽  
PAMI DUA ◽  
BISHWANATH GOLDAR
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effect ◽  
Manufacturing Industries ◽  
Technology Spillovers ◽  
Technology Spillover ◽  
Explanatory Variables ◽  
Diffusion Of Knowledge ◽  
Long Run ◽  
Cointegration Tests

The paper attempts to analyze the spillover effect of Foreign Direct Investment (FDI) across Indian manufacturing industries. Foreign presence by way of FDI brings new channels of technology spillover to the domestic industrial firms in the form of enhanced efficiency and diffusion of knowledge in the long-run. By carrying out Pedroni cointegration tests, the analysis tries to provide a long-run relationship between endogenous variables and explanatory variables, pertaining to technology spillovers across Indian manufacturing industries. We find that technology spillovers are relatively higher in industries like food products, textiles, chemicals, drugs and pharmaceuticals and non-metallic mineral products.

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