Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels
Using newly collected survey data on direct supplier-multinational linkages in Chile, Ghana, Kenya, Lesotho, Mozambique, Swaziland, and Vietnam, this paper first evaluates whether foreign investors differ from domestic producers in terms of their p...
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Language: | English en_US |
Published: |
World Bank, Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2013/04/17626325/potential-actual-fdi-spillovers-global-value-chains-role-foreign-investor-characteristics-absorptive-capacity-transmission-channels http://hdl.handle.net/10986/15570 |
Summary: | Using newly collected survey data on
direct supplier-multinational linkages in Chile, Ghana,
Kenya, Lesotho, Mozambique, Swaziland, and Vietnam, this
paper first evaluates whether foreign investors differ from
domestic producers in terms of their potential to generate
positive spillovers for local suppliers. It finds that
foreign firms outperform domestic producers on several
indicators, but have fewer linkages with the local economy
and offer less supplier assistance, resulting in offsetting
effects on the spillover potential. The paper also studies
the relationship between foreign investor characteristics
and linkages with the local economy as well as assistance
extended to local suppliers. It finds that foreign investor
characteristics matter for both. The paper also examines the
role of suppliers' absorptive capacities in determining
the intensity of their linkages with multinationals. The
results indicate that several supplier characteristics
matter, but these effects also depend on the length of the
supplier relationship. Finally, the paper assesses whether
assistance or requirements from a multinational influence
spillovers on suppliers. The results confirm the existence
of positive effects of assistance (including technical
audits, joint product development, and technology licensing)
on foreign direct investment spillovers, while the analysis
finds no evidence of demand effects. |
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