scholarly journals Spillover Effects of Inward Foreign Direct Investment on Labour Productivity: An Analysis on Skill Composition in Manufacturing Industry

2020 ◽  
Vol 10 (10) ◽  
pp. 593-611
Author(s):  
Norhanishah Mohamad Yunus ◽  
Tajul Ariffin Masron
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Labour Productivity ◽  
Spillover Effects ◽  
Skill Composition ◽  
Inward Foreign Direct Investment

scholarly journals Labour Productivity Spillovers from Foreign Direct Investment: Evidence from Malaysian Industry Level Panel Data by Labour Skills Composition

2021 ◽  
Vol 6 (6) ◽  
pp. 247-258
Author(s):  
Norhanishah Mohamad Yunus
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Productivity ◽  
Spillover Effects ◽  
The United States ◽  
Knowledge Spillover ◽  
Seemingly Unrelated Regression ◽  
Skilled Workers ◽  
Skill Composition ◽  
Local Firms

This study adds to the literature by examining both technology and knowledge spillover effects of foreign direct investment (FDI) according to skill composition and also by country spillovers in Malaysian medium-high industry, which raises the question of the real benefits produced by both spillovers that Malaysia can reap from the presence of FDI in enhancing the labour productivity. Using the seemingly unrelated regression (SUR) estimator to estimate labour productivity function by skill composition, the results reported that the presence of Japanese, Singaporean and the United States MNCs are statistically significant in influencing the productivity of high and medium-skilled workers from both technology and knowledge spillover effects during the period of 2000 to 2018. Conversely, the analysis indicated that both Chinese and Taiwanese MNCs significantly increase the low-skilled labour productivity. An interesting finding was discovered, that the negative association between knowledge spillovers and labour productivity across the skills draws the attention for the role of local firms as recipients of FDIs depends not only on their absorptive capacity but also on their strategic decisions regarding search direction and motivational disposition to absorb external knowledge. These issues need to be investigated further to understand how local firms may increase their chances of benefitting from MNC presence.

scholarly journals The Technology and Knowledge Spillover Effects of FDI on Labour Productivity

2021 ◽  
Vol 5 (4) ◽  
pp. 51-58
Author(s):  
Norhanishah Mohamad Yunus ◽  
Noraida Abdul Wahob
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Knowledge Spillovers ◽  
Labour Productivity ◽  
Spillover Effects ◽  
Knowledge Spillover ◽  
Jel Classification ◽  
The Body ◽  
Seemingly Unrelated Regression ◽  
Manufacturing Industries

Objective – The purpose of this study is to investigate both “technology” and “knowledge” effects of foreign direct investment (FDI) on labour productivity in the medium-high manufacturing industries’ classification in Malaysia. Methodology/Technique –This study employs a Seemingly Unrelated Regression (SUR) estimator. Findings – The results conclude that diffusion of knowledge, which increases labour productivity, is greater via “learning effects” as compared to the investor countries’ capital investments in the medium-high manufacturing industries. Novelty –This study expands the body of knowledge about the benefits of FDI spillovers on labour productivity according to specific investor countries, however, are rarely researched particularly in developing countries and at the industry level. Type of Paper: Empirical. JEL Classification: E60, J24 Keywords: Foreign Direct Investment; Labour Productivity; Technology Spillovers; Knowledge Spillovers Reference to this paper should be made as follows: Yunus,N.M; Wahob, N.A. (2021). The Technology and Knowledge Spillover Effects of FDI on Labour Productivity, Journal of Business and Economics Review, 5(4) 51–58. https://doi.org/10.35609/jber.2021.5.4(5)

scholarly journals Investment promotion in the South African manufacturing industry: incentive comparisons with Malaysia and Singapore

2014 ◽  
Vol 17 (3) ◽  
pp. 319-335 ◽  
Author(s):  
Martha SI Wentzel ◽  
Maxi Steyn
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
South African ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
The South ◽  
Short Term ◽  
Foreign Investors ◽  
Investment Promotion ◽  
Inward Foreign Direct Investment

South Africa needs to increase its inward foreign direct investment in order to achieve economic growth. The purpose of this article is to explore which intervention could be launched in the short term to enhance the country's attractiveness for foreign investors. The findings of the literature review demonstrated that incentives, as a determinant of investment, are the short-term intervention with the most significant potential to attract additional foreign direct investment. A comparative study, which provided insight into the incentives that are currently offered to the manufacturing sectors of three countries (South Africa, Malaysia and Singapore), assisted in identifying two additional incentives that the South African government could introduce and three existing incentives that could be amended. The introduction or modification of these incentives could ensure that South Africa has a competitive advantage to attract investment from foreign investors and thereby increase South Africa's inward foreign direct investment in the manufacturing industry.

Home Country Innovation Performance: Moderating the Local Knowledge and Inward Foreign Direct Investment

2020 ◽  
pp. 097215092092077
Author(s):  
Marco Túlio Dinali Viglioni ◽  
Cristina Lelis Leal Calegario
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Import Substitution ◽  
Generalized Method Of Moments ◽  
Foreign Market ◽  
Innovation Performance ◽  
Policy Implications ◽  
Technology Acquisition ◽  
Inward Foreign Direct Investment

The inward foreign direct investment (FDI) has been emphasized in the literature, and although the benefits related to innovation are known, there is not much information about their effects on emerging economies. This study investigates how local domestic factors such as research and development (R&D), exports and foreign technology acquisition moderate with inward FDI to improve the innovation performance. The empirical findings from a generalized method of moments (GMM) estimator suggest, at short term, that the FDI has a positive effect in the Brazilian manufacturing industry. As a complementary effect, there is an interaction between FDI inflows and exports, increasing the innovation performance. However, improvements in R&D-related FDI is not observed. For this reason, the results suggest FDI-related exports could indicate a mere product adaptation to the foreign market. There is a predominance in import substitution of machines, equipment and software and no evidence of internal R&D investments or R&D-related FDI. Our results suggest managerial and policy implications, once it was observed the high-technology intensity industry sectors show better innovation performance than medium- and low-technology industries. Policymakers should implement better policies to encourage more R&D-related FDI to decrease import substitution and improve the local innovation performance to strengthen the local industry R&D investments.

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