Foreign ownership and production efficiency: a quantile regression analysis

Dimelis, Sophia

doi:10.1093/oep/54.3.449

Cited by 182 publications

(113 citation statements)

References 15 publications

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“…However, the degree of foreign ownership does not affect its extent. In contrast, Dimelis and Louri (2002) find evidence that the degree of foreign ownership matters, and that productivity spillovers are stronger when foreign firms are in minority positions. Similarly, Smarzynska Javorcik (2004) reports positive spillovers from joint ventures with shared ownership in Lithuania, but not from fully owned foreign investments.…”

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confidence: 64%

Technology transfer and spillovers in international joint ventures

Müller¹,

Schnitzer²

2006

Journal of International Economics

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It is often argued that multinationals are reluctant to transfer technology due to the fear of spillovers. We show that this need not be the case if host country policies like taxation are taken into account. Furthermore, we examine the incentives the multinational and the host country have to engage in an international joint venture. We show why a multinational may agree to enter a joint venture even though this gives rise to spillovers. Surprisingly, we find that a joint venture is sometimes not in the interest of a host country, despite the prospect of spillovers.JEL-classification numbers: D43, F21, F23, L13, P31, O12.

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confidence: 64%

Technology transfer and spillovers in international joint ventures

Müller¹,

Schnitzer²

2006

Journal of International Economics

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“…Their study of 13,663 Indonesian manufacturing firms reveals that both minority and majority FDI lead to spillovers, with no statistical differences between the estimated effects. Dimelis and Louri (2002) consider a sample of 4,056 Greek manufacturing firms. In separate regressions they analyze the relation between multinational enterprise ownership and knowledge transfer (to the local affiliate) and the relation between multinational enterprise ownership and knowledge spillovers (to other local firms).…”

Section: Ownership Of the Multinational Enterprisementioning

confidence: 99%

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Smeets¹

2008

The World Bank Research Observer

235

145

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Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies. JEL codes: F23, O33In the face of difficulties associated with capturing spillover effects and the multitude of factors that can influence the extent of spillovers in each economy, we caution researchers about drawing generalized conclusions about the existence of externalities associated with [foreign direct investment] . . . . (Javorcik and Spatareanu 2005, 47) Over the past decade or so a large body of research has examined knowledge spillovers from foreign direct investment (FDI). At several points along the way scholars have paused to take stock of the evidence (Blomström and Kokko 1998;Saggi 2002;Görg and Greenaway 2004). The verdict has largely been inconclusive. Indeed, the empirical inconclusiveness has become so infamous that virtually every study reviewed here begins with this observation as its main motivation. Explanations for the lack of conclusive results have focused on methodological and measurement issues (Görg and Strobl 2001), but this sort of approach has recently been disputed (Lipsey and Sjöholm 2005 The literature has developed in several directions to account for the ambiguity in earlier work. This study reviews these contributions, both theoretical and empirical. To provide some structure in a rapidly expanding field and to identify which approach or combination of approaches is likely to yield the most promising results, the study is structured around three themes. 1 More insight into the conditions under which knowledge spillovers from FDI are most likely to arise is especially important for developing countries. The highly ambiguous evidence to date on the existence of knowledge spillovers from FDI does not seem to warrant the large sums of money spent by governments to attract FDI. 2 After setting the stage in the following section, the article is then structured around figure 1, a representation of the FDI knowledge spillover process and the pieces of the puzzle that may affect it. 3 The section on opening the black box of FDI knowledge spillovers discusses the research on vertical linkages, worker mobility, and demonstration effects. This is followed by a review of the evidence o...

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“…6 Thus, a 5 Domestically owned transnational corporations are local firms carrying out operations in international markets. 6 Dimelis and Louri (2002) present efficiency estimates for industry in Greece. Their findings show that firms under majority foreign ownership have the highest productivity.…”

Section: A Brief Review Of the Literaturementioning

confidence: 99%

The performance of transnational corporations: Evidence for the manufacturing industry in Chile

Vergara¹

2014

CEPAL Review

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This article analyses the performance of transnational corporations in Chilean manufacturing industry. The findings show that while the productivity of subsidiaries of foreign-owned firms is higher than that of local firms, the same is not true of productivity growth. They also show that there are no significant differences in market survival rates between transnational corporations and local firms. However, firms under mainly foreign ownership that are small and have low productivity are more likely to exit the market, displaying more footloose behaviour than their local counterparts. This is associated with lower levels of profitability for this group of transnational firms. Lastly, the findings suggest that transnational corporations are not always more profitable than local firms. Furthermore, they seem able to exploit their advantages over the latter only in the higher quantiles of the profitability distribution.

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Foreign ownership and production efficiency: a quantile regression analysis

Cited by 182 publications

References 15 publications

Technology transfer and spillovers in international joint ventures

Technology transfer and spillovers in international joint ventures

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

The performance of transnational corporations: Evidence for the manufacturing industry in Chile

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