Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms
We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Published: |
Elsevier
2014
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/29792/ |
| _version_ | 1848793853464674304 |
|---|---|
| author | Girma, Sourafel Yundan, Gong Holger, Görg Sandra, Lancheros |
| author_facet | Girma, Sourafel Yundan, Gong Holger, Görg Sandra, Lancheros |
| author_sort | Girma, Sourafel |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms. |
| first_indexed | 2025-11-14T19:06:54Z |
| format | Article |
| id | nottingham-29792 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:06:54Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-297922020-05-04T16:57:22Z https://eprints.nottingham.ac.uk/29792/ Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms Girma, Sourafel Yundan, Gong Holger, Görg Sandra, Lancheros We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms. Elsevier 2014-11-17 Article PeerReviewed Girma, Sourafel, Yundan, Gong, Holger, Görg and Sandra, Lancheros (2014) Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms. Journal of International Economics, 95 (1). pp. 157-169. ISSN 0022-1996 multinationals foreign ownership productivity spillovers http://www.sciencedirect.com/science/article/pii/S0022199614001391 doi:10.1016/j.jinteco.2014.11.007 doi:10.1016/j.jinteco.2014.11.007 |
| spellingShingle | multinationals foreign ownership productivity spillovers Girma, Sourafel Yundan, Gong Holger, Görg Sandra, Lancheros Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title | Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title_full | Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title_fullStr | Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title_full_unstemmed | Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title_short | Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| title_sort | estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms |
| topic | multinationals foreign ownership productivity spillovers |
| url | https://eprints.nottingham.ac.uk/29792/ https://eprints.nottingham.ac.uk/29792/ https://eprints.nottingham.ac.uk/29792/ |