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Horizontal and Vertical Technology Spillovers from FDI in Eastern Europe

Author

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  • Cristina Jude

    (LEO - Laboratoire d'Économie d'Orleans [UMR7322] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique, UBB - Babes-Bolyai University [Cluj-Napoca])

Abstract
The aim of our paper is to empirically estimate the direction and magnitude of technological spillovers from FDI using a plant level dataset of Romanian firms for the period 1999-2007. We use the Levinsohn Petrin (2003) methodology in order to estimate total factor productivity and compute several measures of spillover effect based on time varying Input-Output tables. We find local suppliers to benefit from positive backward spillovers while local clients are negatively affected by forward spillovers. Using several measure of absorptive capacity like human capital or R&D does not change our results. On the other hand, a large technological gap favors the capture of technological spillovers. Labor mobility is the only significant horizontal spillovers. We also find that labor mobility changes direction according to different human capital levels. We finally show that local firms buying inputs from FDI suppliers are negatively affected by a second order vertical spillover.

Suggested Citation

  • Cristina Jude, 2012. "Horizontal and Vertical Technology Spillovers from FDI in Eastern Europe," Working Papers halshs-00828022, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00828022
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00828022
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    References listed on IDEAS

    as
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    Cited by:

    1. Thanh Tam Nguyen-Huu & Ngoc‐sang Pham, 2023. "FDI spillovers, New Industry Development, and Economic Growth," Post-Print hal-04240260, HAL.
    2. Snezhana Hristova & Dusica Stevcevska-Srbinoska, 2020. "Understanding FDI Spillover Effects: Evidence from North Macedonia," Management, University of Primorska, Faculty of Management Koper, vol. 15(1), pages 58-79.
    3. Nguyen-Huu, Thanh Tam & Pham, Ngoc-Sang, 2021. "Escaping the middle income trap and getting economic growth: How does FDI can help the host country?," MPRA Paper 106151, University Library of Munich, Germany.
    4. Ha, Van & Holmes, Mark J. & Tran, Tuyen Quang, 2022. "Does foreign investment crowd in domestic investment? Evidence from Vietnam," International Economics, Elsevier, vol. 171(C), pages 18-29.
    5. Özcan Karahan & Olcay Çolak, 2021. "Foreign Direct Investment and Productivity Growth in Eastern European Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 14(3), pages 26-34, December.

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    Keywords

    FDI; spillovers; technology transfer; total factor productivity; absorptive capacity; IDE; externalités; transfert de technologie; productivité totale des facteurs; capacité d'absorption;
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