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 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 PATTERNS OF KNOWLEDGE SPILLOVER – An FDI perspective

2012 ◽  
Vol 01 (10) ◽  
pp. 10-17
Author(s):  
Sheng-Hsien Lee
Keyword(s):  
Information Technology ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Performance ◽  
Knowledge Spillovers ◽  
Knowledge Spillover ◽  
Empirical Testing ◽  
Dimensional Model ◽  
Academic Interest ◽  
International Setting

It is well understood that knowledge spillover is an important economic phenomenon. Literature shows a long-lasting academic interest in explaining the benefits of knowledge spillovers to business performance both in a domestic and an international setting. However, little has been said about the patterns of knowledge spillovers, especially in the Foreign Direct Investment (FDI) setting. Globalization and information technology have generated new arenas of knowledge spillovers. This exploratory paper addresses this issue by synthesizing past findings, developing a multi-dimensional model and three propositions for further empirical testing.

Foreign Direct Investment as a Development Strategy

2013 ◽  
pp. 13-29 ◽  
Author(s):  
E. Nur Ozkan-Gunay ◽  
Yusuf Cukurcayir
Keyword(s):  
Foreign Direct Investment ◽  
Development Strategy ◽  
Direct Investment ◽  
New Technologies ◽  
Knowledge Spillovers ◽  
Spillover Effects ◽  
Innovation Capability ◽  
Host Countries ◽  
Innovative Capability ◽  
The Impact

This chapter investigates the spillover effects of Foreign Direct Investment (FDI) on innovation capability in four competing emerging economies in the district of Eastern Europe, the Czech Republic, Hungary, Poland, and Turkey, for the period 1995-2008. Panel data models are employed to test two competing hypotheses regarding the impact of FDI on innovation capability: it may improve the innovation capability of host countries via spillover channels, or may lead to the crowding-out effect through the importation of technologies via joint ventures. The empirical evidence corroborates that FDI inflows generate spillover effects on domestic innovation capability in competing emerging countries, supporting the hypothesis that inward FDI brings knowledge spillovers, new technologies, and products into the host country and promotes the innovation capability of domestic firms. In addition, the level of human capital stock and qualified researchers play a crucial role in stimulating innovative capability and technological progress.

Foreign Direct Investment and Total Factor Productivity: Any Nexus?

2020 ◽  
Vol 14 (2) ◽  
pp. 164-190
Author(s):  
Mohammed Abdullah ◽  
Murshed Chowdhury
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Growth Models ◽  
Generalized Method Of Moments ◽  
Spillover Effects ◽  
Jel Classification ◽  
Estimation Methods ◽  
Factor Productivity ◽  
The Impact

This study examines the impact of foreign direct investment (FDI) on the total factor productivity (TFP) of host countries. Extensions of the new growth theory provide a framework in which FDI increases the growth rate of a host country through technology transfer, diffusion and spillover effects. We construct four new series of TFP using the framework of neoclassical growth models. We also address the issue of endogeneity using the generalized method of moments. Our estimations using a balanced panel of 77 low- and middle-income countries suggest that FDI could not promote TFP in the countries studied. Our sensitivity analysis, in terms of alternative estimation methods, data, models and time period, reinforces the findings. We observe that the lack of absorptive capacity is likely to be an important reason for not having a direct relationship between FDI and TFP. JEL Classification: F21, F23, O33, F43, C33

scholarly journals The Impact of Foreign Direct Investment on Employment Opportunities: Panel Data Analysis (Empirical Evidence from Pakistan, India and China).

2009 ◽  
Vol 48 (4II) ◽  
pp. 841-851 ◽  
Author(s):  
Syed Zia Abbas Rizvi ◽  
Mohammad Nishat
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Jel Classification ◽  
Seemingly Unrelated Regression ◽  
Employment Opportunities ◽  
The Impact ◽  
India And China

Over the past two decades, the continent of Asia received a large amount of FDI from developed regions. Additionally, in the Asia, India and China received a major chunk of foreign direct investment and FDI flows to Pakistan also increased significantly. Many studies show that the inflow of FDI plays a significant role in generating employment in host countries. The objective of this study is to undertake an empirical study on creation of employment opportunities by FDI during 1985-2008 in the Asian region. In this regard, we have taken the sample of three countries i.e. Pakistan, India and China from the same region. The Im-Pesaran-Shin (IPS) test of unit root is applied to find out the order of integration. The long run relationship is investigated through the Pedroni (1999) test of panel cointegration. At last, the Seemingly Unrelated Regression (SUR) method is used for estimation of the impact of FDI inflows on employment levels in three countries. Implications for FDI policy are spelt out in the light of these empirical results. JEL classification: F23, E24, C23 Keywords: FDI, Employment, Panel Data

The Technology and Knowledge Spıllover Effects of FDI on Labour Productıvıty—Evıdence from Medıum-Hıgh Industry in Malaysıa

2020 ◽  
Vol 11 (1) ◽  
pp. 110-110
Author(s):  
Norhanishah Mohamad Yunus ◽  
Noraida Abdul Wahob
Keyword(s):  
Developing Country ◽  
Multinational Corporations ◽  
Knowledge Spillovers ◽  
Labour Productivity ◽  
Spillover Effects ◽  
International Technology Transfer ◽  
Technology Acquisition ◽  
Productivity Function ◽  
Short Run ◽  
The Cost

A plethora of studies have revealed the importance of new knowledge transfer from foreign multinational corporations (MNCs) in encouraging higher labour productivity and sustainable competitive advantages. However, less attention is given to low labour productivity issue despite the presence of FDI, especially in the developing country context. Most of the studies only heavily emphasised on 'technology' effects rather than 'knowledge' effects on the host country as a result of the presence of foreign technology. As Malaysia is one of the major FDI recipients in Southeast Asia, the specific spillover effects of each FDI investor country in Malaysia, need to be studied. With an abundance of MNCs, international technology transfer is considered as an imported mode for technology acquisition in a developing country like Malaysia. However, the benefits of FDI spillovers on labour productivity function in Malaysia remain ambiguous, even when classified according to specific investor countries. Globalisation and liberalisation have seen trade and investment activities booming, thus increasing multilateral relations between Malaysia and other countries regardless of their level of development. Thus, this study may help the Malaysian government to justify the cost that should be invested to attract more FDI inflows towards the manufacturing industries in the short run. Keywords: spillover effects, Foreign Direct Investment, labour productivity, technology spillovers, knowledge spillovers

scholarly journals Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya

2019 ◽  
Author(s):  
Felix Adamu Nandonde ◽  
Richard Adu-Gyamfi ◽  
TinayeSonto Mmusi ◽  
Herbert Wamalwa ◽  
Simplice A. Asongu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
South African ◽  
Direct Investment ◽  
Spillover Effects

scholarly journals The Effect of Foreign Direct Investment and Innovation on High Technology Product Imports In Asean 6

2019 ◽  
pp. 1-9
Author(s):  
Roro Aprilia Putri Cahyani ◽  
Tony Irawan ◽  
Prof Widyastutik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Technological Development ◽  
Panel Data Analysis ◽  
High Technology ◽  
Spillover Effects ◽  
Digital Products ◽  
Domestic Technology ◽  
Technology Products ◽  
Asean Countries

Current technological development changes the people's lifestyle becoming progressively modern. Technological development encourages the rapid digitalization that occurs in all countries. The incapability of a country to meet domestic demand for digital products that are closely related to high technology content drives the import of high technology products. On the other hand, the development of Foreign Direct Investment (FDI) is essential in order to support the development of domestic technology of a country due to its spillover effects. ASEAN 6 is a highly attractive for foreign investors as it has strategic location, large market share and abundant resources. This study examines the influence of FDI and innovation on imported high technology products in ASEAN 6. This research employed the panel data analysis from six ASEAN countries during the period of 2007 to 2016. The results of this study indicated that FDI and innovation have a positive effect on imports of high products technology in ASEAN 6.

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