FDI Spillover Effects in China’s Manufacturing Sector: New Evidence From Forward and Backward Linkages

2018 ◽  
pp. 203-222 ◽  
Author(s):  
Chengchun Li ◽  
Sailesh Tanna
Keyword(s):  
Manufacturing Sector ◽  
Spillover Effects ◽  
Backward Linkages ◽  
New Evidence

scholarly journals THE SPILLOVER EFFECTS OF FDI ON LABOR PRODUCTIVITY OF FIRMS: EVIDENCE FROM THE FIVE PRIORITY MANUFACTURING INDUSTRIES IN INDONESIA

2020 ◽  
Vol 28 (1) ◽  
pp. 1-16
Author(s):  
Martin Juda ◽  
Toshihiro Kudo
Keyword(s):  
Labor Productivity ◽  
Manufacturing Sector ◽  
Spillover Effects ◽  
Foreign Firms ◽  
Firm Level ◽  
Negative Results ◽  
Level Data ◽  
Backward Linkages ◽  
The Relationship ◽  
Local Firms

This study aims to investigate the effects of FDI spillover on labor productivity of the firms in the five priority manufacturing sector industries in Indonesia, namely food and beverages, textiles, wearing apparel and footwear, chemicals and pharmaceuticals, electronics, and automotive and transport equipment industries. Using unbalanced firm-level data from 2000 to 2015, we find positive spillover effects in the horizontal linkages, which measure the presence of foreign firms on the labor productivity of local firms in the same industry. However, the effects of FDI on the labor productivity of domestic in backward linkages shows negative results, which means foreign buyers fail to give benefits to domestic suppliers. Moreover, the relationship between foreign suppliers and domestic buyers in the forward linkages also show negative spillover effects. These findings are also in line when the analyses are disaggregated into each industry, except for the electronics industry. Based on the different results of the three linkages of spillover effects, our findings suggest that the FDI spillover has not provided comprehensive benefits for local firms.

Tariff barriers and industrial spillover effects

2018 ◽  
Vol 22 (3) ◽  
pp. 228-246 ◽  
Author(s):  
Jong Woo Kang ◽  
Suzette Dagli
Keyword(s):  
Negative Impact ◽  
Spillover Effects ◽  
Comparative Statics ◽  
Equilibrium Analysis ◽  
Economic Losses ◽  
Substitution Effects ◽  
Content Type ◽  
Indirect Impact ◽  
Backward Linkages ◽  
Linkage Effects

Purpose The purpose of this paper is to demonstrate that higher tariffs under protectionism will have significant indirect impact through industrial forward and backward linkages, causing greater economic losses to tariff-imposing economies than to exporting countries. Design/methodology/approach The authors use partial equilibrium analysis based on unique multi-regional input-output (IO) data in measuring the second-round spillover effects of higher tariffs, also investigating the scenario of plausible substitutability across import sources as well as sectors based on historical import intensity data. Findings Higher tariffs do not only have a direct impact, but also a significant indirect impact—through forward and backward linkages. Indirect effects can be extensive across economies and sectors—both in forward and backward linkages such as in transport—when value chains are longer and more complex. When possible substitution effects between different import sources and sectors are considered, negative forward linkage effects can be smaller, while negative backward linkage effects become more pronounced. Nevertheless, both negative effects are still found to be much bigger in indirect impacts compared with direct impacts. Research limitations/implications This implies that higher tariffs, including administrative trade measures such as anti-dumping duties and countervailing duties could ironically entail rather greater negative impact on the tariff-imposing importing economies by damaging their exports of domestic sectors using the targeted imports as intermediate inputs, which could be severe if the importing sector has a long value chain in particular through deep forward linkages. Originality/value This paper uses unique multi-regional IO data covering 45 economies’ 35 sectors in analyzing the second-round spillover effects across countries and sectors and employs comparative statics under different scenarios.

Foreign Direct Investment and Productivity Spillovers: A Firm-Level Analysis of Bangladesh in Comparison with Vietnam

2021 ◽  
Author(s):  
Arif-Ur-Rahman ◽  
Kazuo Inaba
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effects ◽  
External Effects ◽  
Productivity Improvement ◽  
Firm Level ◽  
Fdi Spillovers ◽  
Foreign Presence ◽  
Backward Linkages ◽  
Level Analysis

Abstract Foreign direct investment (FDI) is expected to generate external effects—usually termed FDI spillovers—for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are still indecisive. This study examines firm-level panel data to determine the effects of FDI spillover on firms’ productivity in Bangladesh in comparison to Vietnam. We consider both the horizontal and vertical (backward and forward) spillover effects of FDI. We find evidence that Bangladeshi firms gain productivity improvement through intra-industry or horizontal linkages, whereas Vietnamese firms gain through backward linkages. Our findings suggest that increases in foreign presence in the same industry for Bangladesh and in downstream industries for Vietnam are related with increase in output of domestic firms.JEL Code: F2, O1, O3

TRANSMISSION OF MONETARY POLICY SHOCKS: DO INPUT–OUTPUT INTERACTIONS MATTER?

2019 ◽  
Vol 24 (8) ◽  
pp. 1881-1903
Author(s):  
Aarti Singh ◽  
Stefano Tornielli Di Crestvolant
Keyword(s):  
Monetary Policy ◽  
Spillover Effects ◽  
Intermediate Goods ◽  
Input Output ◽  
Monetary Policy Shocks ◽  
Vector Autoregressive ◽  
Policy Shocks ◽  
Monetary Policy Shock ◽  
New Evidence ◽  
Transmission Of Monetary Policy

We examine whether input–output interactions among industries impact the transmission of monetary policy shocks through the economy. Using vector autoregressive (VAR) methods we find evidence of heterogeneity in the output response to a monetary policy shock in both finished goods industries and intermediate goods industries. While output responses in finished goods industries can be related to heterogeneity in industry characteristics, this relationship is not so obvious for intermediate goods industries. For the intermediate goods industries in our sample, we find new evidence of demand-spillover effects that impact the transmission of monetary policy via input–output linkages.

scholarly journals Role of Institutions in the Industrial Development of Pakistan

1995 ◽  
Vol 34 (4III) ◽  
pp. 1081-1090
Author(s):  
Tahir Hijazi
Keyword(s):  
Industrial Development ◽  
Manufacturing Sector ◽  
Value Added ◽  
Degenerate System ◽  
Luxury Goods ◽  
Increase Productivity ◽  
Primary Goods ◽  
The Masses ◽  
Backward Linkages

This study examines why a perverse kind of industrialisation developed in Pakistan. Following independence, the Pakistan government embarked on industrialisation proclaimed as a short-cut to eradicate poverty and reduce unemployment. But after four decades, it is still considered among the poorest countries '. of the world, with per capita annual income of only $375. The share of manufacturing sector in the GDP grew from a nominal base in 1947 to 19.7 percent in 1990, but it did· not help raise the standard of living. Pakistan's economy grew eight-fold I during this period whereas some other developing countries grew many times tenfold.2 Adopting a historical perspective reveals a perverse kind of industrialisation in Pakistan, which inhibits its ability to eradicate poverty [Sixth Five-year Plan 1983-88 (1982)]. By a perverse kind of industrialisation, I mean a degenerate system of industrial development which, instead of helping the national economy to expand and grow retards its process . .It implies selective industrial investment which is more capitalintensive, remains import-dependent, ignores forward and backward linkages, ensures the dominance of larger oligopolists firms, produces lUXUry goods, does not help increase productivity, and is located in a few urban centres. This level of industry creates relatively few jobs, depends on imported materials and instead of increasing value-added at home, and puts extra pressure on. foreign exchange reserves which the economy must meet by exporting primary goods. The absence of forward and backward linkages restricts opportunities for industrial expansion and larger firms relying on . foreign technology employ relatively few workers; and they produce lUXUry goods for higher income brackets, all of which does not benefit the masses. Such perverse characteristics of industrialisation contribute little to the eradication of poverty [Lawrence (1974)].

National versus sectoral shocks: new evidence for the manufacturing sector in European countries

2003 ◽  
Vol 78 (2) ◽  
pp. 241-245 ◽  
Author(s):  
Raúl Ramos ◽  
Miquel Clar ◽  
Jordi Suriñach
Keyword(s):  
Manufacturing Sector ◽  
European Countries ◽  
Sectoral Shocks ◽  
New Evidence

Effects of Higher EITC Payments on Children’s Health, Quality of Home Environment, and Noncognitive Skills

2016 ◽  
Vol 46 (4) ◽  
pp. 519-557 ◽  
Author(s):  
Susan Averett ◽  
Yang Wang
Keyword(s):  
Home Environment ◽  
Fixed Effects ◽  
Spillover Effects ◽  
Policy Implications ◽  
Number Of Children ◽  
Environment Quality ◽  
White Mothers ◽  
Health Quality ◽  
New Evidence

In 1993, the benefit levels of the earned income tax credit (EITC) were changed significantly based on the number of children in the household. Exploiting this policy change and employing a difference-in-differences plus mother fixed effects framework, we find significantly improved home environment quality for children of unmarried mothers, regardless of their race/ethnicity, and lowered probabilities of having accidents and improved mother-rated health for children of married white mothers. Children of unmarried black and Hispanic mothers also had better mother-rated health. Our results provide new evidence of positive spillover effects of the 1993 EITC expansion and therefore have important policy implications.

scholarly journals From Waste to Wealth: Identifying the Economic Impact of the Recycling Sector in Malaysia

2021 ◽  
Vol 58 (1) ◽  
pp. 125-143
Author(s):  
Chakrin Utit ◽  
Anitha Rosland ◽  
M Yusof Saari ◽  
Muhammad Daaniyall Abd Rahman
Keyword(s):  
Economic Impact ◽  
Value Added ◽  
Spillover Effects ◽  
Retail Trade ◽  
Input Output ◽  
The Sustainable Development ◽  
Increasing Trend ◽  
Development Plans ◽  
Development Goals ◽  
Backward Linkages

This paper assesses the economic impact of the recycling sector in Malaysia to gauge its potential for strengthening green-based economic growth in alignment with the Sustainable Development Goals (SDGs). This study employs a comparative impact assessment to analyse the input-output multiplier and linkages using the national input-output tables for 2005, 2010 and 2015. Our results indicate that the recycling sector has high potential to transform waste to wealth from which its value-added multiplier is sufficiently high and is also reinforced with high spillover effects. The recycling sector is identified as a strategic sector, where approximately 70% of its products are embodied in intermediate demand. This sector conforms to circular economy practices as other sectors in the economy are utilising recyclables for remanufacturing purposes. The value-added footprint level of the recycling sector also shows an increasing trend that implies its growing importance in supporting the growth of other production sectors in the economy. At the sectoral level, most of the recyclables are utilised by the Wholesale and Retail Trade sector. Hence, our work emphasises the importance of prioritising the recycling sector in development plans, as well as improving and strengthening the backward linkages between the recycling sector with other production sectors.

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