While the literature has explored the relationship between foreign direct investment (FDI) and productivity, a consensus has yet to be reached regarding FDIs impacts on the productivity of local companies, specifically with respect to vertical spillovers. This analysis extends upon previous works and sheds light on the necessity of distinguishing establishment characteristics when discussing potential benefits from FDI. The analysis shows that export-oriented establishments enjoy forward spillovers. Horizontal and backward spillovers are observed in local market-oriented establishments. These results lead to the conclusion that the literature during the 2000s shows country-wide spillover effects or averaged effects across industries.
ASJC Scopus subject areas
- Economics and Econometrics