Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making

Recent research on productivity spillovers from affiliates of multinational corporations in developing and emerging economies finds that backward linkages from affiliates of foreign-owned firms to local suppliers constitute the main channel transmi...

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Main Authors:	Jordaan, Jacob A., Douw, Willem, Qiang, Christine Zhenwei
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	FOREIGN DIRECT INVESTMENT MULTINATIONAL CORPORATION BACKWARD LINKAGE LOCAL SUPPLIER PRODUCTIVITY SPILLOVER POLICY MAKING TECHNOLOGY TRANSFER
Online Access:	http://documents.worldbank.org/curated/en/302481598274482747/Multinational-Corporation-Affiliates-Backward-Linkages-and-Productivity-Spillovers-in-Developing-and-Emerging-Economies-Evidence-and-Policy-Making http://hdl.handle.net/10986/34381

id	okr-10986-34381
recordtype	oai_dc
spelling	okr-10986-343812022-09-20T00:11:25Z Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making Jordaan, Jacob A. Douw, Willem Qiang, Christine Zhenwei FOREIGN DIRECT INVESTMENT MULTINATIONAL CORPORATION BACKWARD LINKAGE LOCAL SUPPLIER PRODUCTIVITY SPILLOVER POLICY MAKING TECHNOLOGY TRANSFER Recent research on productivity spillovers from affiliates of multinational corporations in developing and emerging economies finds that backward linkages from affiliates of foreign-owned firms to local suppliers constitute the main channel transmitting productivity spillovers. This finding has important policy implications, given that host economy governments often spend considerable resources on attracting multinational corporation investments and promoting their impact on technological development and economic growth. This paper conducts a new and comprehensive survey of recent empirical studies that focus on the drivers and impacts of backward linkages between multinational corporation affiliates and their local suppliers. The literature survey reveals that several characteristics of multinational corporation affiliates and domestic firms, host economy conditions, and various mediating factors influence the level of use of local suppliers, the nature and degree of technology dissemination, and the materialization of productivity spillovers among domestic firms. These findings are used to identify the main areas where policy making can be effective. The paper discusses various types of soft or light-handed industrial policies that host economy governments can design and implement to foster the extent of linkages between multinational corporations and local suppliers, facilitate technology dissemination, and enhance productivity spillovers among domestic firms. 2020-08-27T14:24:18Z 2020-08-27T14:24:18Z 2020-08 Working Paper http://documents.worldbank.org/curated/en/302481598274482747/Multinational-Corporation-Affiliates-Backward-Linkages-and-Productivity-Spillovers-in-Developing-and-Emerging-Economies-Evidence-and-Policy-Making http://hdl.handle.net/10986/34381 English Policy Research Working Paper;No. 9364 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT MULTINATIONAL CORPORATION BACKWARD LINKAGE LOCAL SUPPLIER PRODUCTIVITY SPILLOVER POLICY MAKING TECHNOLOGY TRANSFER
spellingShingle	FOREIGN DIRECT INVESTMENT MULTINATIONAL CORPORATION BACKWARD LINKAGE LOCAL SUPPLIER PRODUCTIVITY SPILLOVER POLICY MAKING TECHNOLOGY TRANSFER Jordaan, Jacob A. Douw, Willem Qiang, Christine Zhenwei Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
relation	Policy Research Working Paper;No. 9364
description	Recent research on productivity spillovers from affiliates of multinational corporations in developing and emerging economies finds that backward linkages from affiliates of foreign-owned firms to local suppliers constitute the main channel transmitting productivity spillovers. This finding has important policy implications, given that host economy governments often spend considerable resources on attracting multinational corporation investments and promoting their impact on technological development and economic growth. This paper conducts a new and comprehensive survey of recent empirical studies that focus on the drivers and impacts of backward linkages between multinational corporation affiliates and their local suppliers. The literature survey reveals that several characteristics of multinational corporation affiliates and domestic firms, host economy conditions, and various mediating factors influence the level of use of local suppliers, the nature and degree of technology dissemination, and the materialization of productivity spillovers among domestic firms. These findings are used to identify the main areas where policy making can be effective. The paper discusses various types of soft or light-handed industrial policies that host economy governments can design and implement to foster the extent of linkages between multinational corporations and local suppliers, facilitate technology dissemination, and enhance productivity spillovers among domestic firms.
format	Working Paper
author	Jordaan, Jacob A. Douw, Willem Qiang, Christine Zhenwei
author_facet	Jordaan, Jacob A. Douw, Willem Qiang, Christine Zhenwei
author_sort	Jordaan, Jacob A.
title	Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
title_short	Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
title_full	Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
title_fullStr	Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
title_full_unstemmed	Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making
title_sort	multinational corporation affiliates, backward linkages, and productivity spillovers in developing and emerging economies : evidence and policy making
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/302481598274482747/Multinational-Corporation-Affiliates-Backward-Linkages-and-Productivity-Spillovers-in-Developing-and-Emerging-Economies-Evidence-and-Policy-Making http://hdl.handle.net/10986/34381
_version_	1764480780342394880

Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making

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