Industrial Linkages and Export Spillovers from FDI

摘要

Attracting foreign direct investment (FDI) has figured prominently in the agenda of policymakers of developed and developing countries alike. FDI is believed to bring many benefits to host economies, directly through, inter alia, increases in employment, research and development (R&D) expenditure, investment, and indirectly through externalities (i.e. spillovers). Spillovers from FDI, in particular in terms of productivity, have attracted considerable attention in the empirical and theoretical literature (Gorg and Greenaway, 2004). In this exercise, we concentrate on export spillovers using a data set of British manufacturing firms from 1992 to 1999. This is of interest given that one of the prime concerns of economic policymaking has long been that of promoting exports.