Girma, Sourafel, Gong, Yundan, Görg, Holger and Lancheros, Sandra (2015). 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.
Abstract
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.
Publication DOI: | https://doi.org/10.1016/j.jinteco.2014.11.007 |
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Divisions: | College of Business and Social Sciences > Aston Business School College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship |
Additional Information: | © 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/ |
Uncontrolled Keywords: | companiestreatment,effectsspillovers,multinational,Economics and Econometrics,Finance |
Publication ISSN: | 0022-1996 |
Last Modified: | 05 Aug 2024 15:20 |
Date Deposited: | 26 Aug 2015 20:36 |
Full Text Link: | |
Related URLs: |
http://www.scop ... tnerID=8YFLogxK
(Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2015-01 |
Published Online Date: | 2014-11-07 |
Authors: |
Girma, Sourafel
Gong, Yundan ( ![]() Görg, Holger Lancheros, Sandra |