Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/2846 
Year of Publication: 
2002
Series/Report no.: 
Research Paper No. 2002,14
Publisher: 
Leverhulme Centre for Research on Globalisation and Economic Policy, University of Nottingham, Nottingham
Abstract: 
This paper focuses on the role of absorptive capacity in determining whether or not domestic establishments benefit from productivity spillovers from FDI. We analyse this issue using establishment level data for the electronics and engineering sectors in the UK. We distinguish the effect of FDI in the same sector and region from FDI in the same sector but outside the region. We also allow for different effects of FDI on establishments located at different quantiles of the productivity distribution by using conditional quantile regression. Overall, while there is substantial heterogeneity in results across sectors and quantiles, our findings clearly suggest that both absorptive capacity and distance matter for productivity spillover benefits. We find evidence for a u-shaped relationship between absorptive capacity and productivity spillovers from FDI in the region, while there is an inverted u-shaped relationship for spillovers from FDI outside the region.
Document Type: 
Working Paper

Files in This Item:
File
Size
629.18 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.