MNEs, technological efforts and channels of export spillover: An analysis of Indian manufacturing industries

Multinational corporations' economic and human rights impacts on developing countries: a review and research agenda

“…However, these positive spillovers are contingent on certain contexts. For example, they depend on trade policies Jongwanich and Kohpaiboon, 2008), and on the characteristics of MNCs (Anwar and Nguyen, 2011) and of domestic firms (Sun 2009(Sun , 2010Franco and Sasidharan, 2010), as well as on location-specific features, such as concentration of FDI in a region (Zhou et al, 2002;Lipsey andSjöholm, 2004, 2004;Takii, 2009;Zhang, 2011) or the level of urbanization of the host country (Lutz et al, 2003).…”

“…viii This is explained as in order to be able to absorb, adapt and master foreign technologies and skills, local people, firms and institutions need to have accumulated a certain number of capabilities (Bell and Pavitt, 1993). Franco and Sasidharan (2010) also find that the degree of domestic firms' investments in Research & Development (R&D) positively affects the generation of FDI export spillovers, contributing to the learning effect needed to achieve increased exports. The dimensions of social capabilities also are important for the manifestation of wage spillovers.…”

Multinational exposure, export variety and price: Evidence from Chinese electronics exporters

“…Focusing on the manufacturing sector in India, Franco and Sasidharan (2010) propose that different export spillover channels may have different impacts on firms' decision in exporting and export intensity. They find that the R&D activities (skills intensity) of MNEs have a positive (negative) effect on the export propensity (export intensity) of domestic firms.…”

Spillover effects enhancing sales, production and competitiveness of South African manufacturers

“…On the positive side, for domestic firms, MNE investment could improve production, growth and competition prospects of especially less-developed countries through the transferral of information and technology, and the improvement of domestic understanding of international markets (Alvarez, 2007). The traditional beneficial characteristics of MNEs, like superior technology and managerial skills, may also not be fully protected, presenting local firms with the opportunity to internalise the leakage of information emanating from foreign investment (Franco et al, 2010).…”

“…On the negative side, a loss of independence may be experienced by domestic firms and a significant portion of profits and market share may have to remain with the multi-national firm that made the initial investment (Motohashi et al, 2010). The spillover effect of MNEs is mediated through three channels, namely the demonstration effect as a result of the MNEs' superior expertise emanating from their operations in foreign markets; an imitation effect or research-and-development effect; and a competition effect forcing firms to enhance their productivity and export performance (Franco et al, 2010).…”