Estimating Direct and Indirect Effects of Foreign Direct Investment on Firm Productivity in the Presence of Interactions between Firms

Girma, Sourafel; Gong, Yundan; Görg, Holger; Lancheros, Sandra

doi:10.2139/ssrn.2505371

Cited by 9 publications

(16 citation statements)

References 30 publications

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“…Researchers who study on the FDI literature have paid attention to productivity spillovers. Productivity spillovers imply that once multinational enterprises are located in host country markets, domestic firms adjacent to the foreign firms can enjoy productivity enhancements from existence of FDI (Aitken & Harrison, 1999; Girma et al, 2015, etc.). The theoretical motivation about why productivity spillovers arise is that domestic firms can learn from foreign firms.…”

Section: Resultsmentioning

confidence: 99%

“…This paper relates to research on the economic effects of multinational enterprises on host economies. Researchers have examined the influence of multinationals on variables such as wage (Girma and Görg, 2007), employment (Girma, 2005) and extensively host country productivity (Arnold & Javorcik, 2009; Girma et al, 2015; Haskel et al, 2007; Javorcik, 2004; Keller & Yeaple, 2009). My paper differs from the existing papers by focussing on market power as measured by markup.…”

Section: Introductionmentioning

confidence: 99%

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The pro‐competitive effects of foreign firm entry: Evidence from the Korean retail sector

Hwang

2021

World Economy

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I investigate the effect of foreign entry on host country market competition. Using a firm‐level data set for the Korean retail sector during the process of FDI liberalisation, I find that the increase in the number of foreign stores caused average markups across local firms to fall. I show that the channel through which FDI decreases local firms’ markups increased competition as opposed to productivity spillovers.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The pro‐competitive effects of foreign firm entry: Evidence from the Korean retail sector

Hwang

2021

World Economy

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“…This proceeds by using an inverse propensity score weighting approach (as, e.g. in Girma et al., 2015), but weighs observations separately at each point in time, in such a way that the treatment variable is independent of past time‐varying covariates including, crucially, treatment and outcome variables that preceded it. To our knowledge this is the first paper to use a dynamic treatment effects estimator to evaluate the causal effects of exports markets entry.…”

Section: Empirical Strategymentioning

confidence: 99%

“…As we discuss below, standard propensity score‐based methods (as we have used in a cross sectional context in our own work, e.g. Girma et al., 2015) are unable to provide the true average treatment effect in such a case. We therefore apply a recently developed approach that is able to deliver unbiased estimates of average treatments in the presence of such time‐varying treatments (Robins & Hernán, 2008; Vandecandelaere et al., 2016).…”

Section: Introductionmentioning

confidence: 97%

Productivity effects of processing and ordinary export market entry: A time‐varying treatments approach

Girma

Görg

2021

Rev International Economics

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China's policy of encouraging export processing has been the topic of much discussion in the academic literature and policy debate. We use a recently developed econometric approach that allows for time varying “treatments” and estimate economically and statistically significant positive causal effects of entering into export processing and ordinary export markets on subsequent firm level productivity. These productivity effects are shown to be larger than those accruing to firms who enter into ordinary exporting. Interestingly, the estimation of quantile treatment effects shows that the positive effects do not accrue similarly to all types of firms, but are strongest for those at the low to medium end of the distribution of the productivity variable. We also find that export processors gain more when entering the industrialised North rather than the South, while this does not appear to matter much for ordinary exporting.

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“…Zum anderen ist zu untersuchen, welche Auswirkungen die Präsenz deutscher Unternehmen auf einheimische Firmen im Empfängerland hat. Diese Effekte werden in der Literatur meist als "Spillover-Effekte" oder "indirekte Effekte" bezeichnet (Girma et al 2015a).…”

Section: Problemstellungunclassified

Die Effekte deutscher Direktinvestitionen im Empfängerland vor dem Hintergrund des Leistungsbilanzüberschusses

Görg

Marchal

2019

Perspektiven Der Wirtschaftspolitik

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ZusammenfassungDeutschland hat seit Jahren einen Leistungsbilanzüberschuss, der international kritisiert wird. Die Bedeutung der deutschen Direktinvestitionen im Ausland ist dabei in den letzten Jahren stark gestiegen. Vor diesem Hintergrund untersuchen Holger Görg und Léa Marchal die Effekte von Direktinvestitionen auf Unternehmen im Gastland. Dazu werden Unternehmensdaten für Frankreich verwendet. Insgesamt liefert die Studie zwei wirtschaftspolitisch relevante Ergebnisse. Zum einen haben deutsche Übernahmen von französischen Unternehmen im Durchschnitt keine negativen Auswirkungen auf Produktivität, Qualifikationsstruktur und Handelsaktivität der übernommenen Unternehmen. Zum anderen zeigt sich, dass sich die Präsenz deutscher Unternehmen positiv auf französische Unternehmen, die in derselben Industrie angesiedelt sind, auswirkt. Dies gilt sowohl hinsichtlich der Produktivität und Qualifikationsstruktur als auch der Export- und Importaktivität der Unternehmen. Der Effekt auf Exporte erscheint dabei stärker als der auf Importe. Dies hat Implikationen für die Leistungsbilanz. Zwar erhöhen, saldenmechanisch, deutsche Direktinvestitionen im Ausland den bestehenden Leistungsbilanzüberschuss der Bundesrepublik. Sie haben jedoch auch Implikationen für Unternehmen im Empfängerland, die ihre Produktivität und Handelsaktivität steigern.

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Estimating Direct and Indirect Effects of Foreign Direct Investment on Firm Productivity in the Presence of Interactions between Firms

Cited by 9 publications

References 30 publications

The pro‐competitive effects of foreign firm entry: Evidence from the Korean retail sector

The pro‐competitive effects of foreign firm entry: Evidence from the Korean retail sector

Productivity effects of processing and ordinary export market entry: A time‐varying treatments approach

Die Effekte deutscher Direktinvestitionen im Empfängerland vor dem Hintergrund des Leistungsbilanzüberschusses

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