Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267756 
Year of Publication: 
2022
Series/Report no.: 
ADBI Working Paper No. 1323
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
The paper examines the foreign direct investment (FDI) spillover effects in developing countries and investigates the importance of the absorptive capacity of a firm and a country in realizing and facilitating FDI spillover. It uses data obtained from the World Bank's Enterprise Surveys for 107 countries from 2007 to 2020. The study finds that firms in developing countries do not benefit from horizontal FDI but benefit from forward and backward vertical FDI. The study also finds that firms can benefit from horizontal, forward, and backward FDI by improving the absorptive capacity of firms and host countries. Based on these findings, several recommendations are presented to help firms benefit from FDI spillover.
Subjects: 
foreign direct investment
technology transfer
absorptive capacity
JEL: 
D22
F21
O3
R1
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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