Spatial effects of foreign direct investment in US states

Bode, Eckhardt; Nunnenkamp, Peter; Waldkirch, Andreas

doi:10.1111/j.1540-5982.2011.01685.x

Cited by 31 publications

(26 citation statements)

References 45 publications

(54 reference statements)

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“…Recently, some studies tested FDI spatial spillovers on productivity or economic growth and confirmed their existence (Madariaga and Poncet ; Bode et al. ).…”

Section: Spillover Channels and Empirical Evidencementioning

confidence: 91%

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The spillover effect of FDI and its impact on productivity in high economic output regions: A comparative analysis of the Yangtze River Delta and the Pearl River Delta, China

Wen

2014

Papers in Regional Science

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Using a dynamic panel data spatial Durbin model, this paper aims to examine FDI spillover and impacts on urban productivity in the Yangtze River Delta (YRD) and the Pearl River Delta (PRD). We find that FDI has positive impacts on local city's productivity but its spatial spillovers behave differently in the YRD and PRD. Spatial interactions cannot be neglected in urban growth; yet YRD and PRD demonstrates significant but opposite spatial growth effects. FDI accelerates the economic growth convergence in the YRD while slows down convergence in the PRD. Positive spatial spillover of productivity occurs in the YRD while negative spatial spillover occurs in the PRD. The results point to important policy implications for the two regions to attract FDI and promote urban development.

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“…Recently, some studies tested FDI spatial spillovers on productivity or economic growth and confirmed their existence (Madariaga and Poncet ; Bode et al. ).…”

Section: Spillover Channels and Empirical Evidencementioning

confidence: 91%

“…Bode et al. 's () research, using data for US states from 1977–2003 and including spatial interdependence, indicates that inward FDI generates positive externalities on domestic TFP.…”

Section: Spillover Channels and Empirical Evidencementioning

confidence: 99%

The spillover effect of FDI and its impact on productivity in high economic output regions: A comparative analysis of the Yangtze River Delta and the Pearl River Delta, China

Wen

2014

Papers in Regional Science

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“…Bode et al (2012) find spatial proximity to be important for spillovers from foreign firms operating in US states. Several earlier studies suggest that FDI intensified the spatial clustering of industrial activity within the United States by locating where agglomeration economies could be reaped (e.g., Coughlin et al 1991;Head et al 1995;Bobonis and Shatz 2007).…”

Section: Department Of Industrial Promotion and Policy (Dipp) Of The mentioning

confidence: 99%

Regional concentration of FDI in post-reform India: A district-level analysis

Bickenbach

Liu

Nunnenkamp

2014

The Journal of International Trade & Economic Development

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We analyze the concentration of FDI in India at the district level, based on projectspecific location choices since the reform program in the early 1990s. The decomposition property of the Theil index allows us to trace changes over time in the overall concentration of FDI to changes in concentration between and within subgroups of districts. We also differentiate between major types and sources of FDI. We find that the extensive margin of concentration persistently increased, with an ever larger number of districts not attracting any projects. The intensive margin increased as well but the increase leveled off in the most recent past. These trends hold for essentially all types and sources of FDI, while the average level of concentration varies considerably between these types and sources. Acknowledgement:We thank Michaela Rank for excellent research assistance and Stefan Sonntag for programming support.

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“…Complementary to the evidence reported by Ö zyurt (2008), there is a growing literature with respect to third-country effects of FDI activity (see, e.g., Baltagi, Egger and Pfaffermayr 2007;Garretsen and Peeters 2009;Shepotylo 2010). Using regional data, Bode, Nunnenkamp, and Waldkirch (2011) analyze spatial effects of FDI and other Marshallian externalities on regional productivity growth among US states. The authors find that spatial effects shape these externalities significantly and help avoid drawing false policy conclusions.…”

Section: Theory and Empirics Of Productivity-trade-fdi Linkagesmentioning

confidence: 99%

“…Variables denoted by ''$ '' indicate weighted averages of values for spatial proximate neighbors. In modeling A 0i;t , we draw on Bode, Nunnenkamp, and Waldkirch (2011) and create it from the following terms: A 0;i represents the productivity effects of time-invariant location factors, e mt captures the common productivity effects of exogenous technological progress. The last term in equation (3) measures interregional productivity spillovers.…”

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confidence: 99%

Measuring Regional Spillovers in Long- and Short-Run Models of Total Factor Productivity, Trade, and FDI

Mitze

2012

International Regional Science Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis article applies the novel concept of global panel cointegration to analyze the role played by trade and foreign direct investment (FDI) activity in driving regional total factor productivity (TFP). Using West German state-level data for the period 1976-2008, the approach allows us to identify the magnitude of direct trade and FDI effects as well as spatial spillovers from these variables. The author finds that the inclusion of spatial lags significantly improves the fit of the empirical model and allows us to strongly reject the null of no cointegration among the variables in the full spatial specification. For the long-run cointegration equation, the empirical results hint at export-and FDI-led growth. Additionally, outward FDI activity shows to have positive spatial spillover effects among German regions, while the spatial patterns of import and inward FDI activity indicate substitution effects of interregional input-output linkages in favor of international ones over the sample period 1976-2008. In the short run, TFP growth is predominantly affected by changes in exports, inward and outward FDI stocks, where the latter variable also provokes positive spillovers. The author uses alternative spatial weighting matrices based on geographical information as well as interregional goods transport flows to check the 1 Rheinisch-Westfðlisches Institut für Wirtschaftsforschung (RWI), Essen, Germany Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG-geförderten) Allianz-bzw. Nationallizenz frei zugänglich. This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively. robustness of the obtained spillover effects in the long and short run. Here, the results turn out to be similar for the different empirical specifications employed throughout the analysis. Finally, summing over the four variables to get a direct and indirect net effect of internationalization activity, the author finds that the direct effect is always positive, while the indirect net effect is positive in the short run but slightly negative in the long-run equation.

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Spatial effects of foreign direct investment in US states

Cited by 31 publications

References 45 publications

The spillover effect of FDI and its impact on productivity in high economic output regions: A comparative analysis of the Yangtze River Delta and the Pearl River Delta, China

The spillover effect of FDI and its impact on productivity in high economic output regions: A comparative analysis of the Yangtze River Delta and the Pearl River Delta, China

Regional concentration of FDI in post-reform India: A district-level analysis

Measuring Regional Spillovers in Long- and Short-Run Models of Total Factor Productivity, Trade, and FDI

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