Comparative advantage FDI? A host country perspective

Waldkirch, Andreas

doi:10.1007/s10290-011-0096-8

Cited by 18 publications

(13 citation statements)

References 25 publications

(57 reference statements)

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“…1 Empirically, most recent studies based on the predictions generated by the knowledge-capital model find that differences in skilled-labour endowments deter multinational activity and confirm Brainard's (1997) result that most FDI appears to be of the horizontal type (Carr et al, 2001(Carr et al, , 2003Markusen and Maskus, 2002;Blonigen et al, 2003;Blonigen, 2005). Support for the vertical model, on the other hand, is rather limited, although a few authors have found some (Davies, 2002;Yeaple, 2003;Waldkirch, 2004;Braconier et al, 2005a). The most commonly used data source in empirical work comes from the US Bureau of Economic Analysis (BEA) and consists of US inbound and outbound observations.…”

Section: Introductionmentioning

confidence: 87%

“…The most commonly used data source in empirical work comes from the US Bureau of Economic Analysis (BEA) and consists of US inbound and outbound observations. Braconier et al (2005a) add Swedish data, Blonigen et al (2003) additionally use Organisation for Economic Co-operation and Development (OECD) data and Braconier et al (2005b) add various other national data sources, while Waldkirch (2004) uses inward Mexican and Kristja´nsdo´ttir (2005) uses inward Icelandic data.…”

Section: Introductionmentioning

confidence: 99%

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The structure of multinational activity: evidence from Germany

Waldkirch

2010

Applied Economics

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Recent empirical studies of the determinants of multinational activity across countries have found overwhelming support for a horizontal rather than a vertical model of Foreign Direct Investment (FDI). The majority of these studies use data either originating in or targeted at the US. This article presents evidence from a dataset of German inward and outward FDI. The dataset is similar in scope to the widely used US Bureau of Economic Analysis data, making the results comparable to those from previous studies. In addition, a new empirical specification is employed that avoids some of the problems that have plagued these studies. The results provide little indication of vertical multinationals. FDI happens largely between similarly endowed countries. Multinational firms originate in skilled-labour abundant countries, although the evidence is mixed on whether they are also small. A novel result is that German firms invest disproportionately in other European countries, while the reverse is not true.

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Section: Introductionmentioning

confidence: 87%

Section: Introductionmentioning

confidence: 99%

The structure of multinational activity: evidence from Germany

Waldkirch

2010

Applied Economics

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“…Hence, in the context of National Innovation Systems, knowledge spillovers are the feature of main interest regarding FDI flows, since they are likely to generate long-run structural benefits for host countries' economic dynamics through the promotion of enduring systemic shifts on the productive structure (Hansen & Rand, 2006;Waldkirch, 2011). As a consequence of these theoretical postulations, FDI attraction initiatives currently represent a policy trend in developing nations (Waldkirch, 2011).…”

Section: Foreign Direct Investments In the Context Of National Innovamentioning

confidence: 99%

“…As a consequence of these theoretical postulations, FDI attraction initiatives currently represent a policy trend in developing nations (Waldkirch, 2011).…”

Section: Foreign Direct Investments In the Context Of National Innovamentioning

confidence: 99%

“…Focus is given to the case of developing countries (classified as middle-income nations -see section Analytical Framework for a thorough conceptualization), since there is a widespread claim that positive externalities arising from FDI are particularly relevant for these nations, given their situation of innovative laggards (Hansen & Rand, 2006;Waldkirch, 2011). Also, these economies are playing an increasingly relevant role in FDI attraction flows (Álvarez & Marín, 2010), particularly for KIBS (Yang & Yan, 2010).…”

Section: Introductionmentioning

confidence: 99%

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On the Contributions of Knowledge-Intensive Business-Services Multinationals to Laggard Innovation Systems

Fischer

2015

BAR, Braz. Adm. Rev.

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Foreign direct investment (FDI) is assumed to be a source of knowledge flows across National Innovation Systems, with particular relevance for developing countries. Nonetheless, empirical assessments are usually manufacturingoriented, providing only a partial view of the phenomena under scrutiny. This article aims at contributing to this body of literature by investigating the impacts of inward FDI on aggregate outcomes of developing countries' National Innovation Systems, taking into account potential contributions from Knowledge-Intensive BusinessServices (KIBS) multinationals and their respective comparison with manufacturing investments. Using a panel dataset comprising 38 developing countries (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010), fixed-effects regressions are applied according to a traditional endogenous growth model. Empirical findings underscore the relevance of KIBS MNCs' contributions to host innovation systems in developing countries. These impacts broadly surmount those of manufacturing FDI and they are particularly significant for: (a) value added in services; (b) value added in manufacturing; (c) aggregate export capacity; and (d) international (United States Patent and Trademark Office [USPTO]) patenting activity.

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