FDI Productivity Spillovers in the Andean Region: Econometric Evidence from Colombian Firm-Level Panel Data

De Lombaerde, Philippe and Pedraza, Erika (2004). FDI Productivity Spillovers in the Andean Region: Econometric Evidence from Colombian Firm-Level Panel Data. UNU Institute on Regional Integration Studies.

Document type:
Report
Collection:

Metadata
Documents
Links
Versions
Statistics
  • Attached Files (Some files may be inaccessible until you login with your UNU Collections credentials)
    Name Description MIMEType Size Downloads
    O-2004-14.pdf PDF application/pdf 387.51KB
  • Sub-type Working paper
    Author De Lombaerde, Philippe
    Pedraza, Erika
    Title FDI Productivity Spillovers in the Andean Region: Econometric Evidence from Colombian Firm-Level Panel Data
    Volume/Issue No. 14
    Publication Date 2004
    Place of Publication Bruges
    Publisher UNU Institute on Regional Integration Studies
    Language eng
    Abstract

    The analysis of the existence and the nature of spillover effects of foreign direct investment on the activity and efficiency of domestic firms experienced a major qualitative step forward thanks to the availability and recent incorporation of firm-level data. This permitted performing methodologically more robust types of analysis. The results of these analyses, however, were not always according to expectations. Several researchers did not find the expected positive spillover effects. In some studies, even negative spillovers were found. This was the case, for example, in the work done by Aitken and Harrison (1999), using data from Venezuelan firms for the 1976-1989 period. They found a negative relationship between the presence of FDI at the industry level and total factor productivity of local firms, although positive intra-firm effects were detected. This was a particularly important result given the historically high degree of scepticism vis-à-vis FDI in the region and the current debate on the optimal level of economic openness in the context of globalisation, in general, and the Free Trade Area of the Americas, in particular. In this contribution we present new results on productivity spillovers using Colombian manufacturing firm-level panel data for the 1995-2000 period. We tested (i) whether foreign ownership is associated with an increase in productivity at the plant level, and (ii) whether foreign ownership in an industrial sector affects the productivity of domestically owned firms in the same industry. The results show no or very weak (and not significant) spillover effects. If positive effects on the productivity of domestic firms are found at all, they are apparently completely absorbed by the most productive domestic firms.

    Keyword Foreign direct investment
    Multinational enterprises (mne)
    Productivity spillovers
    Colombian manufacturing industry
    Andean region
    Copyright Holder UNU Institute on Comparative Regional Integration Studies
    Copyright Year 2004
    Copyright type All rights reserved
  • Versions
    Version Filter Type
  • Citation counts
    Google Scholar Search Google Scholar
    Access Statistics: 360 Abstract Views, 214 File Downloads  -  Detailed Statistics
    Created: Fri, 15 Feb 2019, 14:32:45 JST