scholarly journals Productivity Spillover Effect of Foreign Direct Investment into Korea

2010 ◽  
Vol 14 (2) ◽  
pp. 21-46
Author(s):  
Kim Hyuk Hwang ◽  
Kim June Dong
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effect

Does foreign direct investment spillover total factor productivity growth? A study of Indian drugs and pharmaceutical industry

2017 ◽  
Vol 24 (7) ◽  
pp. 1937-1955 ◽  
Author(s):  
Nitin Arora ◽  
Preeti Lohani
Keyword(s):  
Foreign Direct Investment ◽  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Spillover Effect ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Content Type ◽  
Domestic Firms ◽  
Tfp Growth

Purpose Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry. Design/methodology/approach This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function. Findings The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry. Research limitations/implications The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework. Practical implications Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy. Social implications In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws. Originality/value The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

scholarly journals THE IMPACT OF INNOVATION ON ECONOMIC GROWTH: THE SPILLOVER EFFECT OF FOREIGN DIRECT INVESTMENT

2020 ◽  
Vol 8 (2) ◽  
pp. 708-714
Author(s):  
Nguyen Tran Thai Ha ◽  
Sobar M. Johari ◽  
Trinh Thi Huyen Thuong ◽  
Nguyen Thi Minh Phuong ◽  
Le Thi Hong Anh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Research And Development ◽  
Direct Investment ◽  
Positive Impact ◽  
Spillover Effect ◽  
Empirical Method ◽  
Convincing Evidence ◽  
Positive Contribution ◽  
The Impact

Purpose of the study: Innovation is seen as the key to improving quality and productivity, thereby promoting competition and economic growth. This study analyzes the impact of innovation on economic growth through various measures, such as research and development spending, the number of researchers, number of patents as well as trademark registrations. Research results are evidence to recommend policies for intellectual-based economic growth. Methodology: Literature review and empirical analysis conducted in the study. The empirical method is a two-step System Generalize Methods of Moments (GMM), aiming at reliable results. Accessing the World Bank Database, research data from 64 developed and developing countries are collected from 2006 to 2014. Main Findings: The empirical findings show that innovation plays a crucial contribution in promoting economic growth, similar to national openness and government spending on education. This study also finds a positive impact on foreign investment flows and their spillover role in enhancing the correlation between innovation and economic growth. Applications of this study: The findings of this study focus on the contributions of innovation, foreign direct investment inflows, and other macro factors that can be enforced to improve economic growth by policymakers. Novelty/Originality of this study: The study uses different measures of innovation, including inputs such as the number of researchers, research and development expenditure, and outputs as the number of patents and number of trademark registrations. Empirical findings are found consistently, thus confirming that innovation is very important for economic growth. The study also shows convincing evidence confirming the positive contribution of foreign direct investment as well as its spillover effect on innovation and economic growth.

scholarly journals Industrial Agglomeration, Foreign Direct Investment and Green Total Factor Productivity―Evidence from Manufacturing Industries in Chongqing, China

2018 ◽  
Author(s):  
Guohua Yu ◽  
Shuqin Xu
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Spillover Effect ◽  
Inhibitory Effect ◽  
Industrial Agglomeration ◽  
Factor Productivity ◽  
Development Mode ◽  
Conduction Path

This paper studies the influence mechanism of industrial agglomeration and foreign direct investment (FDI) on green total factor productivity (GTFP). We use the SBM Directional Distance Function to measure the GTFP of Chongqing's manufacturing industry from 1999 to 2015. The results show that the level of GTFP in Chongqing's manufacturing industry is relatively low, which is contrary to the current green development mode. By clarifying the conduction path of industrial agglomeration and FDI on GTFP, we use the panel Tobit model to study the effect of industrial agglomeration and FDI on GTFP. The main findings are: the higher the level of industrial agglomeration, the more beneficial it is to increase GTFP. FDI has an inhibitory effect on GTFP. The spillover effect of FDI on GTFP is not significant. At the same time, FDI counteracts the role of industrial agglomeration in promoting GTFP. The findings in a present study indicate that, according to Chongqing's experience, the "pollution haven" is established. Therefore, relying solely on foreign technology to promote the development of the manufacturing industry has many drawbacks clearly. Only by improving the ability of independent innovation is the reliable way to enhance GTFP effectively.

scholarly journals The spillover effect of foreign direct investment – the case of Slovak beer and malt production sector 

2012 ◽  
Vol 52 (No. 8) ◽  
pp. 347-352
Author(s):  
P. Bielik ◽  
J. Pokrivčák ◽  
A. Qineti ◽  
N. Pokrivčáková
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Asset Specificity ◽  
High Quality ◽  
Barley Malt ◽  
Dominant Position ◽  
Production Sector

The paper deals with the FDI spillover effects in production of beer and malt in Slovakia. Malt producers have a dominant position in the market. The use of the almost monopsonistic power of malt producers is constrained the by low asset specificity of primary producers of barley, other outlets for the disposal of barley (export), and demand for high quality of malt from malt producers. Because of high dependence of malt producers for high quality and reliable deliveries of barley, malt producers provide a significant assistance of primary farmers. 

scholarly journals The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters

2020 ◽  
Vol 17 (18) ◽  
pp. 6477
Author(s):  
Shi Wang ◽  
Hua Wang ◽  
Qian Sun
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Interaction Effect ◽  
Direct Investment ◽  
Econometric Model ◽  
Spillover Effect ◽  
Eastern Region ◽  
Environmental Standards ◽  
Spatial Econometric ◽  
The Impact

This research investigates the interaction effect between corruption and foreign direct investment (FDI) on environmental pollution by applying the spatial econometric model to the panel data of China’s 29 provinces from 1994 to 2015 and analyzes the differences between China’s eastern, central and western regions. Results show that (a) FDI inflow deteriorates the environmental quality, validating the pollution haven hypothesis (PHH); (b) by weakening the environmental standards, corruption enables the inflow of low-quality FDI, weakens the spillover effect of FDI and indirectly causes further environmental pollution; (c) the interaction effect between corruption and FDI on environmental pollution is less significant in the eastern region than in the central and western regions.

Sign in / Sign up

Export Citation Format

Share Document