Spillover effects of foreign direct investments on Turkish manufacturing industry

2000 ◽  
Vol 12 (8) ◽  
pp. 1111-1130 ◽  
Author(s):  
Erhan Aslano?lu
Author(s):  
Jing Li ◽  
Daniel Shapiro

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.


2013 ◽  
Vol 9 (3) ◽  
pp. 413-435 ◽  
Author(s):  
Jing Li ◽  
Dong Chen ◽  
Daniel M. Shapiro

AbstractWe investigate the degree to which the presence of inward foreign direct investments (FDI) influences product innovation by emerging market firms. We begin with FDI spillover effects at the national level, the common approach in the literature. We further examine spillover effects at the subnational level because knowledge spillovers have been found to be localized. We study both intra-industry and inter-industry FDI spillovers in a subnational location, based on the distinction in the cluster literature between Marshall–Arrow–Romer specialization externalities and Jacobian diversification externalities. Using information from more than 346,000 Chinese manufacturing firms from 2000 to 2006, we find that Chinese firms improve product innovation when they are located in cities with concentrated foreign innovative activities in the same industry. These intra-industry spillover benefits decrease quickly, however, as foreign presence increases and, at high levels of foreign concentration, are dominated by the crowding-out effect. We also find evidence of inter-industry spillover benefits in a city; diversity of industries with a foreign presence contributes to product innovation by Chinese firms.


2017 ◽  
Vol 44 (2) ◽  
pp. 232-252 ◽  
Author(s):  
Nazif Durmaz

Purpose In the last decade, foreign direct investment (FDI) flows have increased dramatically in the world, especially in the emerging economies. Some of these countries make changes in their market conditions that will improve the civil rights and liberties to attract better FDI flows. The purpose of this paper is to test the linkage between democracy and FDI flows to Turkey. Design/methodology/approach The present study employs a bounds testing procedure developed (Pesaran et al., 2001) for cointegration analysis on six different long-run models with selected determinants of FDIs with yearly data from 1977 to 2011. Findings The intuition the paper empirically provides how improvements in democracy have a significant positive impact on FDI flows to Turkey. The results may also put forward that, in the long run, FDI inflows will have spillover effects in Turkey’s economy. Research limitations/implications Although one drawback in the study is having a small sample size of 35 observations, estimating six different long-run models is one way to overcome it. Thus presented results may be in short of simplification for some readers. This, however, opens an opportunity for future studies to further the proposal by employing in different models and/or longer data sets if possible. Practical implications A stable government policies, more civil freedom, and sustained institution politics should not be ignored in Turkey given its geopolitical location. Originality/value This paper satisfies the established need to study of democracy and FDI flows link is necessary in an emerging market such as Turkey.


2013 ◽  
Vol 03 (04) ◽  
pp. 39-56
Author(s):  
Adejumo Akintoye Victor

The study examined the relationship between foreign direct investment and the value added to the manufacturing industry in Nigeria, between the period 1970 and 2009. In view of the development and industrialising desires of Nigeria, as well as the foreign aid received in form of private investments, it is pertinent to examine the effect the presence of multinationals has had in shaping the Nigerian manufacturing industry. Using the autoregressive lag distribution technique to determine the relationship between foreign direct investment and manufacturing value added, it was discovered that in the long-run, foreign direct investments have had a negative effect on the manufacturing sub-sector in Nigeria.


Author(s):  
Chiara Franco ◽  
Kornelia Kozovska

In recent years Foreign Direct Investments (FDIs) inflows towards Eastern European countries have progressively increased, further stimulated by the entry of some countries into the European Union. However, the empirical literature finds mixed evidence for the actual occurrence of spillover effects from MNEs. We contribute to this discussion by investigating whether spillover effects occur more frequently in domestic firms located within regional clusters, taking into account the distinction between low-tech and high-tech sectors. Our findings show no evidence that location within regional clusters contributes to firms benefiting from FDIs spillovers. The findings for Romania show that, on the contrary, the productivity of firms located within regional clusters is influenced more negatively by the presence of MNEs than of firms located outside regional clusters. Furthermore, we find that FDIs have, in most cases, negative impact on firm-level productivity, in line with the previous findings of empirical studies on transition countries.


2018 ◽  
Vol 10 (4) ◽  
pp. 590-613 ◽  
Author(s):  
Katarína Melichová ◽  
Ina Melišková ◽  
Lucia Palšová

Abstract In an increasingly urbanized world, the scarcity of space is a growing problem along with land consumption and soil sealing. To achieve sustainable development and sustainable land use, society has to resolve conflicts between residential, industrial, transport, commercial and green areas while creating a balance between social, economic and ecological targets. However, coordination of sustainable land use is a challenge for policymakers. The paper examines whether the withdrawal of land from the agricultural land fund leads to development, measured both by the increase in domestic entrepreneurial activity, as well as by the increase in foreign direct investments. The results are based on the analysis of panel data on the amount of land withdrawal, newly established firms and inward flow of FDI covering 41 administrative districts of Slovak Republic over 9 years (6 years in case of the FDI, due to the availability of data). Additionally, the spatial Durbin panel model was used to examine, whether land withdrawal and its non-agricultural use generate positive spillover effects on surrounding regions in terms of increased entrepreneurial activity and flow of FDI.


2018 ◽  
Vol 5 (2) ◽  
pp. 226-234 ◽  
Author(s):  
Sessa Anata Salam ◽  
Bambang Prishardoyo

Tujuan dari penelitian ini untuk mengetahui terdapat atau tidaknya pengaruh human capital spillover effects terhadap produktivitas industri pengolahan di Kawasan Kedungsepur. Industrialisasi sejak masa orde baru periode 1967-1997 telah mengubah struktur perekonomian Indonesia. Kawasan Kedungsepur menjadi lokasi penelitian dikarenakan terdapatnya potensi dalam bidang industri dibandingkan dengan 8 (delapan) kawasan strategis lainnya di Provinsi Jawa Tengah. Pada tahun 2007-2012 perkembangan PDRB sektor industri pengolahan cenderung mengalami penurunan. Salah satu yang mempengaruhi produktivitas ialah SDM yang berkualitas, sehingga peneliti ingin melihat apakah terdapat pengaruh Human Capital Spillove Effects serta pengaruh dari faktor lainnya seperti tenaga kerja industri dengan tingkat pendidikan rendah dan tingkat pendidikan tinggi, modal industri serta upah terhadap produktivitas industri pengolahan pada Kawasan Kedungsepur. Penelitian ini menggunakan fungsi produksi Cobb-Douglas. Metode analisis yang digunakan berupa Ordinary Least Squares dengan menggunakan regresi data panel. Berdasarkan hasil penelitian tidak ditemukan adanya pengaruh dari tenaga kerja industri dengan tingkat pendidikan rendah. Kesimpulan penelitian ini ialah, ditemukan Human Capital Spillover Effect terhadap produktivitas industri pengolahan pada kawasan Kedungsepur. Tenaga kerja industri pendidikan rendah tidak berpengaruh secara nyata, angkatan kerja di luar industri dengan tingkat pendidikan tinggi, tenaga kerja industri dengan tingkat pendidikan tinggi, modal industri dan upah berpengaruh secara nyata dan positif terhadap produktivitas industri kawasan Kedungsepur. The purpose of this research to determine whether or not the influence of human capital spillover on the productivity of processing industries in the Area Kedungsepur. Industrialization since the ner order during the period 1967-1997 has changed the structure of economic in Indonesia. Kedungsepur became the location of the research because have a potential of manufacturing industry than 8 (eight) other strategic areas in the Province of Central Java. In 2007-2012 GDP growth of manufacturing industry tends to drop in. one of which affect the productivity are qualified human resource, so the researcher wanted to see wether there are affected of human capital spillover effects an the influence of another factors such as industrial workers with low level of education and high level of education levels, industrial capital and wages on the productivity of the manufacturing industry in the region of Kedungsepur.  Based on the result, the industry labor with lower education hasn’t influenced the productivity of manufacturing industry. The conclusion of this research, human capital spillover has effects the productivity of manufacturing industry at Kedungsepur. The industry labor with lower education takes no affect, in other hands the force labor with higher education, the industry labor higher education, capital, and wages have influenced the productivity of manufacturing industry at Kedungsepur with positive.


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