Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework

Using a cross-section of more than 25,000 domestic manufacturing firms in 78 low and middle-income countries from the World Bank's Enterprise Surveys, this paper assesses how mediating factors influence intra-industry productivity spillovers to domestic firms from foreign direct investment. It...

Full description

Bibliographic Details
Main Authors: Farole, Thomas, Winkler, Deborah
Format: Policy Research Working Paper
Language:en_US
Published: World Bank, Washingon, DC 2013
Subjects:
Online Access:http://hdl.handle.net/10986/16386
id okr-10986-16386
recordtype oai_dc
spelling okr-10986-163862021-04-23T14:03:29Z Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework Farole, Thomas Winkler, Deborah foreign direct investment spillovers productivity firm characteristics absorptive capacity institutions Using a cross-section of more than 25,000 domestic manufacturing firms in 78 low and middle-income countries from the World Bank's Enterprise Surveys, this paper assesses how mediating factors influence intra-industry productivity spillovers to domestic firms from foreign direct investment. It identifies three types of mediating factors: (i) foreign direct investment spillover potential, (ii) domestic firm absorptive capacity, and (iii) the host country's institutional framework. It finds that all three affect the extent and direction of foreign direct investment spillovers on domestic firm productivity. However, the impact of mediating factors depends significantly on the level of domestic firms' productivity and the structure of foreign ownership. 2013-12-17T22:50:23Z 2013-12-17T22:50:23Z 2012-11 http://hdl.handle.net/10986/16386 en_US Policy Research Working Paper;No. 6265 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washingon, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic foreign direct investment
spillovers
productivity
firm characteristics
absorptive capacity
institutions
spellingShingle foreign direct investment
spillovers
productivity
firm characteristics
absorptive capacity
institutions
Farole, Thomas
Winkler, Deborah
Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
relation Policy Research Working Paper;No. 6265
description Using a cross-section of more than 25,000 domestic manufacturing firms in 78 low and middle-income countries from the World Bank's Enterprise Surveys, this paper assesses how mediating factors influence intra-industry productivity spillovers to domestic firms from foreign direct investment. It identifies three types of mediating factors: (i) foreign direct investment spillover potential, (ii) domestic firm absorptive capacity, and (iii) the host country's institutional framework. It finds that all three affect the extent and direction of foreign direct investment spillovers on domestic firm productivity. However, the impact of mediating factors depends significantly on the level of domestic firms' productivity and the structure of foreign ownership.
format Publications & Research :: Policy Research Working Paper
author Farole, Thomas
Winkler, Deborah
author_facet Farole, Thomas
Winkler, Deborah
author_sort Farole, Thomas
title Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
title_short Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
title_full Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
title_fullStr Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
title_full_unstemmed Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
title_sort foreign firm characteristics, absorptive capacity and the institutional framework
publisher World Bank, Washingon, DC
publishDate 2013
url http://hdl.handle.net/10986/16386
_version_ 1764433046205890560