Spillover effects and the decision to export in Korean manufacturing firms

2014 ◽  
Vol 19 (4) ◽  
pp. 588-603 ◽  
Author(s):  
Yonghun Jung ◽  
Seong-Hoon Lee
Author(s):  
Brian A. Baird

Economists’ interest in the question of public infrastructure productivity has grown steadily since the 1980s. This paper reviews the literature on this topic with a particular focus on transportation's economic impact. Cumulative evidence reveals that, first, estimates of the elasticity of output with respect to public capital have declined over time and are currently in-distinguishable from zero. Second, highways have local negative spillover effects that arise from economic activities being drawn to infrastructure-rich locations at the expense of adjacent areas. Third, transportation infrastructure is subject to congestion, which reduces the productivity of such infrastructure even when stocks remain constant. Finally, highways consistently enhance the productivity of manufacturing firms even when they do not do so for firms in other sectors.


2017 ◽  
Vol 12 (1) ◽  
pp. 18-41 ◽  
Author(s):  
V. Pradeep ◽  
Mita Bhattacharya ◽  
Jong-Rong Chen

The economic reforms in India since the early 1990s have aimed to improve the productivity and competitiveness of major industries. This article examines direct and indirect (spillover) effects from research and development (R&D), exporting activities and foreign direct investment (FDI) on the productivity of foreign and domestic manufacturing firms. Our empirical model employs data from over 1,000 Indian manufacturing firms between 1994 and 2008. With a balanced panel, robust estimation techniques including generalized method of moment (GMM) and system-GMM (sys-GMM) are employed for our empirical analysis. In most cases, our findings indicate that foreign presence has a significant positive spillover effect on the productivity of Indian manufacturing firms when compared to alternative spillovers from R&D and export initiatives. The spillover effects may vary due to R&D efforts and exporting activities. We also find that spillovers may vary between FDI and non-FDI firms and with the technological advances of industries.


2016 ◽  
Vol 9 (4) ◽  
pp. 198
Author(s):  
John Mayanja Bbale ◽  
John Bosco Nnyanzi

<p>The main purpose of this article is to investigate the drivers of labor productivity in the firms at the intra-industry level with focus on the spillover effects of FDI. Using a fixed effects approach, we estimate an expanded Cobb-Douglas production function in its intensive form to isolate the effects of increased capital intensity on labor productivity as well as the spillovers, using annual Private Sector Investment Survey data collected on the Ugandan manufacturing firms over the period 2007- 2010. Over all, there are significant negative horizontal spillovers for the domestic firms in Uganda, with OECD-originating FDI appearing to be the main source of such effects. By location, these are most adverse in the western and eastern regions and better spillovers can be traced in the central region. Additional findings point to firm size, labor quality and profit as positive contributors to labor productivity, whereas technology gap exhibits a detrimental impact just as we document no significant effect of capital intensity. Larger domestic firms appear to benefit significantly from spillovers in industries where foreign firms have a larger presence. The aforementioned findings reflect the need for well-designed policies to improve the competitiveness of local firms particularly via an incentive-equal opportunity-policy that captures both domestic and foreign investors and to improve infrastructure and other investor-friendly environment in the East and Western parts of Uganda. Similarly, our results suggest that the promotion of joint ventures (foreign) is likely to generate unequivocal benefits to the manufacturing sector in Uganda not only in terms of less negative horizontal spillovers but also from the labor quality, firm size and profit spillovers perspective. Finally, the finding of learning difficulties of domestic firms from foreign firms calls for programs in line with skill acquisition through job training and the review of the curriculum to focus on labor quality.</p>


2017 ◽  
Vol 21 (04) ◽  
pp. 1750035 ◽  
Author(s):  
LUIGI ALDIERI ◽  
CONCETTO PAOLO VINCI

In this paper, we analyse the relationship between Research and Development (R&D) spillovers and productivity. To this aim, we develop a non-overlapping generation model to evidence the theoretical idea of the spillovers between firms and then we implement an empirical investigation based on data from 9th and 10th Survey on Italian Manufacturing Firms (IMM) conducted by Capitalia to test for this idea. The results provide evidence of higher productivity in R&D and skill intensive industries and this can be interpreted as the signal of the relevance of spillover effects. Indeed, in-house R&D does not capture all aspects of innovation, which often occurs via other channels, especially in SMEs. Small and medium firms, such as Italian firms, are much more able to innovate by exploiting knowledge created outside of them. Thus, the results of our paper suggest that R&D spillovers reinforce in-house R&D in affecting SMEs productivity. Moreover, the contribution of this paper is also to stress the importance of skill composition of the labour force in the innovation process of firms.


2016 ◽  
Vol 61 (02) ◽  
pp. 1640028 ◽  
Author(s):  
PAITOON WIBOONCHUTIKULA ◽  
CHAYANON PHUCHAROEN ◽  
NUCHIT PRUEKTANAKUL

This study investigates technological spillovers of foreign direct investment (FDI) in horizontal, upstream, and downstream industries on domestic manufacturing firms in Thailand, using firm level data from the 2012 industrial census conducted by the National Statistical Office. First, we measure total factor productivity (TFP) and estimate stochastic production frontier to find technical efficiency of firms. Next, we examine impacts of the FDI and other factors on the TFP and technical efficiency of domestic firms. The results provide no evidence on spillover effects of the FDI in horizontal industries on either the TFP or technical efficiency of domestic firms. While the FDI in upstream industries shows negative spillover effects, the FDI in downstream industries reveals positive and significant spillover effects on firms in all industry groups. Firm-specific characteristics such as age, size, availability of imported raw materials, location at industrial estates, and R&D activities all had positive effects on firms’ TFP and technical efficiency in total industries. Although export capability had a positive impact on total factor productivity and technical efficiency of domestic firms in the capital and technology-intensive industries, the effect was insignificant in the labor-intensive ones. The findings imply limited spillover effects of the FDI on domestic firms but highlight favorable effects of the openness policy (affecting availability of imported raw materials and exports), infrastructural investment (available in the industrial estates), and R&D activities. Incentives should be given to the FDI with vertical linkages with domestic input suppliers in order for local firms to gain the most from FDI technology transfers.


2020 ◽  
pp. 47-62
Author(s):  
Andrei A. Yakovlev ◽  
Nina V. Ershova ◽  
Olga M. Uvarova

The paper analyzes the shifts in government priorities in terms of support of big and medium manufacturing enterprises amid 2008—2009 and 2014—2015 crises. Based on the data of 2009, 2014 and 2018 surveys of Russian manufacturing firms, using logit regressions we identify factors that affect the receipt of financial and organizational support at different levels of government. The analysis shows that in 2012—2013 the share of manufacturing firms that received state support shrank significantly as compared to 2007—2008; moreover, the support concentrated on enterprises that had access to lobbying resource (such as state participation in the ownership or business associations membership). In 2016—2017 the scale of state support coverage recovered. However, the support at all levels of government was provided to firms that carried out investment and provided assistance to regional or local authorities in social development of the region, while the factor of state participation in the ownership became insignificant. The paper provides possible explanation for these shifts in the criteria of state support provision in Russia.


2009 ◽  
pp. 100-110 ◽  
Author(s):  
A. Yakovlev

The paper considers the behavior of Russian enterprises during the current crisis using the data of the latest survey of 1000 manufacturing firms. Special attention is paid to features of firms planning big investment for the next 12 months. The links between current investment plans, previous investment in 2005-2008 and other factors are shown. Finally we analyze the most important barriers for doing business from the point of view of investors.


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