Publication detail

Which Foreigners Are Worth Wooing? A Meta-Analysis of Vertical Spillovers from FDI

Author(s): doc. PhDr. Tomáš Havránek Ph.D.,
doc. PhDr. Zuzana Havránková Ph.D.,
Type: IES Working Papers
Year: 2010
Number: 16
Published in: IES Working Papers 16/2010
Publishing place: Prague
Keywords: Foreign direct investment; Productivity; Spillovers; Meta-analysis; Publication selection bias
JEL codes: C83; F23
Suggested Citation: Havránek, T., Iršová, Z. (2010). “ Which Foreigners Are Worth Wooing? A Meta-Analysis of Vertical Spillovers from FDI” IES Working Paper 16/2010. IES FSV. Charles University.
Grants: GAUK 76810 Development and Application of Meta-Analytic Methods in Economics
Abstract: The principal argument for subsidizing foreign investment is the assumed spillover of technology to local firms. Yet researchers report mixed results on spillovers. To examine the phenomenon in a systematic way, we collected 3,626 estimates from 57 empirical studies on between-sector spillovers and reviewed the literature quantitatively. Our results indicate that model misspecifications reduce the reported estimates, but that journals select rela¬tively large estimates for publication. The underlying spillover to suppliers is positive and economically significant, whereas the spillover to buyers is insignificant. Greater spillovers are generated by investors that come from distant countries and that have only slight tech¬nological advantages over local firms. In addition, greater spillovers are received by countries that have underdeveloped financial systems and that are open to international trade.
Downloadable: WP 2010_16_Havranek, Irsova




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