Foreign Direct Investment, Spillovers and Absorptive Capacity: Evidence from Quantile Regressions
By Sourafel Girma, Holger Görg. Social Science Research Network, 2005
172 citations recorded by the source corpus.
This paper focuses on the role of absorptive capacity in determining whether or not domestic firms benefit from productivity spillovers from FDI using establishment level data for the UK. We allow for different effects of FDI on establishments located at different quantiles of the productivity distribution by using conditional quantile regression. Overall, while there is some heterogeneity in results across sectors and quantiles, our findings clearly suggest that absorptive capacity matters for productivity spillover benefits. We find evidence for a u-shaped relationship between productivity growth and FDI interacted with absorptive capacity. We also analyse in some detail the impact of changes in absorptive capacity on establishments' ability to benefit from spillovers.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/cb246dacffe2b9e96ac6f0cf9ca6736822f9ac68
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Citations in the corpus
- Does Distance Matter in Spillover (2007, unknown): “analysing vertical spillovers is Girma et al. (2004), which measures horizontal and vertical spillovers in the United Kingdom.”
- Innovation, ownership and profitability (2009, methodology): “As noted in some applied work (for example Girma and Görg, 2005), methods such as quantile regression have been used to deal with this problem (Koenker and Bassett, 1978).”
- Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment? (2004, methodology): “Girma et al. (2001) use firm level panel data for UK manufacturing for the period 1991 to 1996.”