scholarly journals Vertical Versus Horizontal Foreign Direct Investment and Technology Spillovers

2021 ◽  
pp. 99-126
Author(s):  
Naoto Jinji ◽  
Xingyuan Zhang ◽  
Shoji Haruna

AbstractForeign direct investment (FDI) and international trade are two major channels of international diffusion of technological knowledge (Keller 2004,2010). While a number of empirical studies confirm significant spillover effects of knowledge through imports, the empirical findings on technology spillover effects through FDI are conflicting. In particular, there is relatively little evidence of spillovers of knowledge from inward FDI to the host country’s firms in the same industry. For example, Haskel et al. (2007) examine the situation in the United Kingdom and find significantly positive productivity spillovers from FDI.

2012 ◽  
Vol 57 (02) ◽  
pp. 1250011 ◽  
Author(s):  
SMRUTI RANJAN BEHERA ◽  
PAMI DUA ◽  
BISHWANATH GOLDAR

The paper attempts to analyze the spillover effect of Foreign Direct Investment (FDI) across Indian manufacturing industries. Foreign presence by way of FDI brings new channels of technology spillover to the domestic industrial firms in the form of enhanced efficiency and diffusion of knowledge in the long-run. By carrying out Pedroni cointegration tests, the analysis tries to provide a long-run relationship between endogenous variables and explanatory variables, pertaining to technology spillovers across Indian manufacturing industries. We find that technology spillovers are relatively higher in industries like food products, textiles, chemicals, drugs and pharmaceuticals and non-metallic mineral products.


2014 ◽  
Vol 962-965 ◽  
pp. 3076-3079
Author(s):  
Quan Sheng Xu

as a complex of capital, technology and management, FDI has become the focus of attention of many scholars. It is important for technological progress, industrial upgrading and economic growth mode transformation to optimize the quality of foreign investment and enhance FDI technology spillovers, On the base of foreign direct investment theories, it empirically analyzes regional differences of FDI technology spillover effects and explores the causes, and then finds the problems in the use of FDI in China's three major regions, particularly in central and western regions, and ultimately provide a reference for optimizing the use of FDI and enhancing the spillover effects of FDI on domestic enterprises.


2020 ◽  
Vol 1 (14) ◽  
pp. 117-124
Author(s):  
Aleksandra Borowicz

Since 2016, a change in the policy on foreign direct investment (FDI) can be observed in the European Union. This change was significantly influenced by global processes, which resulted in a particular interest in direct investments carried out by transnational corporations from China, India or Russia. In particular, countries such as France, Germany and the United Kingdom, observed a significant increase in the number of mergers and acquisitions of domestic enterprises in 2010-2016. Therefore, in 2018 the process of creating a European Screening Mechanism was initiated, which entered into force in March 2019. At the same time, at the end of 2019, the outbreak of a COVID-19 virus pandemic stopped the process of further globalization by breaking global supply chains, and by restricting the flow of goods, people and capital. Keywords: FDI, screening mechanism, European Union, globalization, COVID-19.


2019 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Mehman Karimov

It is said that after globalization processes foreign direct investment start to influence trade moreover it is very complicated to deduce the relationship between trade and FDI according to theoretical analysis. Therefore, empirical studies showed that until the 1980s international trade generated direct investment but after 1980s FDI started to heavily influencing international trade. Also, results showed that the relationship can differ from one country to another. Thus, this paper is aimed to analyze the impact of Foreign Direct Investment inflow on the macroeconomic variable as a Trade (Export, Import) in Turkey. The paper covers the time period from 1974 to 2017. The time series datasets, those are obtained from World Bank and IMF database are utilized in employed statistical models as ADF Unit Root, VAR lag selection, Johansen co-integration, and the Granger Causality tests, to fulfill empirical part of the paper. Based on results, it was confirmed that there was the presence of the co-integration between analyzed series. Additionally, results of Granger causality test showed that there is unidirectional causality from Export and Import to FDI.


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