Foreign Direct Investment and Local Economic Development: Beyond Productivity Spillovers

Görg, Holger; Strobl, Eric

doi:10.2139/ssrn.715981

Cited by 41 publications

(35 citation statements)

References 47 publications

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“…Similar to employment, sales competition could potentially capture both positive spillovers, i.e., domestic firms are spurred to become more efficient or to upgrade their technology due to competition (Blomström and Kokko, 1998) or negative spillovers such as market stealing or congestion pricing (Aiken and Harrison, 1999;Görg and Greenaway, 2004;Görg and Strobl, 2005). Our empirical results reveal that negative spillovers in this case are the dominant effect in both limited and wider geographic scopes in our study.…”

Section: Introductionmentioning

confidence: 68%

FDI Spatial Spillovers in China

Lin

Kwan

2014

SSRN Journal

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This paper studies FDI spatial spillovers in China. Empirical investigation reveals that, along the spatial dimension, FDI presence tends to generate negative intra-regional spillovers that dominate other potential positive externalities. The direction, magnitude and scope of inter-regional spillovers vary, depending on the spillover channels. Our empirical findings call for a rethinking of policy-driven agglomeration among indigenous firms and MNEs in developing countries.

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Section: Introductionmentioning

confidence: 68%

FDI Spatial Spillovers in China

Lin

Kwan

2014

SSRN Journal

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“…Some of the research using panel data showed the existence of positive effects or assuming certain factors such as absorption capacity (Kinoshita 2001, Girma 2005) and the level of technological gap between foreign and domestic companies (Kokko,Tansini and Zejan 1994;Basile,Castellani and Zanfei 2003). In a detailed review of the research on the spillover effects related to FDI, Gorg and Strobl (2004) concluded that the results of productivity spillover does not depend on whether data at the level of industries or companies were used but on whether methods of comparative data or panel data were used. Of the 40 studies, in 19 there has been a statistically significant conclusions about the existence of positive spillover effects, 15 studies found no significant spillover effects and 6 studies found evidence of negative spillover effects.…”

Section: Literaturereviewmentioning

confidence: 99%

“…Variables for detecting vertical spillover effects are designed using input-output table. Some studies have found evidence of positive vertical spillover effects (Schoors and van der Tol (2002) for Hungary, Javorcik, Saggi and Spatareanu (2004) for Lithuania; Blalock and Simon (2009) for Indonesia. Other studies, however, have come to the different results.…”

Section: Literaturereviewmentioning

confidence: 99%

Impact of foreign direct investments on Serbian industry

Boljanović¹,

Hadžić²

2017

Industrija

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“…In a similar way, Gorg and Strobl concluded that FDI can be of use to local companies, not only through transfer of technology, but also through the so-called externalities. In other words, foreign investors increased the demand for local products and services that are used in everyday business, primarily at the local level, which enabled local companies to increase productivity [6].…”

Section: Fdi and Economic Development Of The Host Countrymentioning

confidence: 99%

The impact of FDI on the economic development of Serbia

Rapaić¹

2017

Ekonomika preduzeca

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SažetakSva dosadašnja istraživanja koja su pokušala da pruže odgovor na pitanje da li strane direktne investicije doprinose ekonomskom razvoju zemlje domaćina, dala su različite rezultate i suprotne odgovore na postavljeno pitanje. Stručna i naučna javnost se i dalje spori oko samog koncepta efekata prelivanja, koji se zasniva na tezi da strane direktne investicije pozitivno deluju na domaća preduzeća, pospešujući time razvoj privrede zemlje domaćina. Među osnovnim prednostima priliva stranih direktnih investicija za zemlju domaćina, prvenstveno se navodi rast zaposlenosti. S obzirom na to da je nezaposlenost rak rana srpske privrede, strane direktne investicije percipirane su u javnosti kao najbolji lek za ublažavanje posledica tranzicionog perioda i nagle privatizacije. Uverena u svemoćno dejstvo stranih investicija na privredu zemlje domaćina, Republika Srbija je u posmatranom periodu uložila značajna materijalna sredstva u njihovo subvencionisanje. Ova politika privlačenja stranih direktnih investicija sprovodila se netransparentno, što je za posledicu imalo priliv onih investicija čiji je cilj bio privatizacijom pridobiti tržište ili obezbediti niže troškove rada. Ostalo je nejasno da li su strane direktne investicije uopšte doprinele ekonomskom razvoju Srbije u periodu koji karakteriše priliv od preko dvadeset milijardi evra. Autor je u radu pokušao da pruži odgovor na ovo pitanje koristeći se korelacionom analizom kako bi utvrdio postoji li kvantitativno slaganje između priliva stranih direktnih investicija i jedanaest izabranih indikatora ekonomskog razvoja Srbije. Ključne reči: strane direktne investicije, Srbija, ekonomski razvoj, teorija efekata prelivanja, zaposlenost, zarade, BDP Abstract 1Previous studies that attempted to answer whether FDI contributes to economic development of the host economy came up with conflicting results. Scientific community is still divided over the very concept of spillover effects, which is based on the thesis that FDI has a positive effect on local companies, thus stimulating the host economy. According to this theory, employment growth is among the main benefits of FDI inflow for the host country. Given that unemployment is the biggest problem of the Serbian economy, FDI is perceived by the public as the best remedy for alleviating the consequences of the transition period and rapid privatisation. Convinced in the omnipotent effect of FDI on the economy of the host country, the Republic of Serbia has invested significant resources in their subsidising. This policy of attracting foreign direct investments was implemented through non-transparent measures, which resulted in the inflow of FDI whose main purpose was to obtain the share of the market or provide lower operating costs through privatisation. It was unclear whether the FDI inflow of over 20 billion euros contributed to the economic development of Serbia in the2001-2013 period. The author attempted to provide an answer to this question by using correlation analysis, in order to determine whether there is a relat...

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Foreign Direct Investment and Local Economic Development: Beyond Productivity Spillovers

Cited by 41 publications

References 47 publications

FDI Spatial Spillovers in China

FDI Spatial Spillovers in China

Impact of foreign direct investments on Serbian industry

The impact of FDI on the economic development of Serbia

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