Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90107
Authors: 
Gorodnichenko, Yuriy
Svejnar, Jan
Terrell, Katherine
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7824
Abstract: 
We use rich firm-level data and national input-output tables from 17 countries over the 2002-2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). We document that backward linkages have a consistently positive effect on productivity of domestic firms while horizontal and forward linkages show no consistent effect. We also examine how the strength of spillovers varies by sector, FDI source, business environment (corruption, red tape, level of development), firm's distance to the technological frontier, education of workers, and other firm- and country-specific characteristics.
Subjects: 
FDI
spillovers
transition economies
efficiency
JEL: 
F23
M16
O16
P23
Document Type: 
Working Paper

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