Publication detail

Panel Data Evidence on Productivity Spillovers from Foreign Direct Investment: Firm-Level Measures of Backward and Forward Linkages

Author(s): PhDr. Pavel Vacek Ph.D.,
Type: IES Working Papers
Year: 2010
Number: 19
ISSN / ISBN:
Published in: IES Working Papers 19/2010
Publishing place: Prague
Keywords: FDI, spillovers, forward–backward linkages
JEL codes: F23
Suggested Citation: Vacek, P. (2010). “Panel Data Evidence on Productivity Spillovers from Foreign Direct Investment: Firm-Level Measures of Backward and Forward Linkages” IES Working Paper 19/2010. IES FSV. Charles University.
Abstract: I examine whether foreign direct investment increases the productivity of manufacturing firms. I test the proposition that local firms benefit from supplying multinational firms (spillovers through backward linkages) and by purchasing inputs from multinationals (spillovers through forward linkages). The existing literature on productivity spillovers has relied on industry-level proxies for spillovers. I identify spillovers directly at the firm level. I have conducted field work in the Czech manufacturing sector and built a unique data set that enabled me to construct firm-level measures of backward and forward linkages. My results provide strong support for the existence of productivity spillovers through backward linkages.

Downloadable: WP 2010_19_Vacek

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