Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels

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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Bibliographic Details
Main Author: Winkler, Deborah
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
AUDITS
CATERING
COMPETITOR
DEVELOPING COUNTRIES
DIRECT FOREIGN INVESTMENT
DOMESTIC ECONOMY
DOMESTIC FIRM
DOMESTIC FIRMS
DOMESTIC MARKET
DOMESTIC SUPPLIER
DOMESTIC SUPPLIERS
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
EMERGING MARKET
EMERGING MARKET ECONOMIES
EMPLOYMENT
EQUIPMENT
EXPORT MARKET
EXPORT SHARE
EXPORTERS
FDI
FIRM SIZE
FIRMS
FOREIGN AFFILIATES
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN FIRM
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTOR
FOREIGN INVESTORS
FOREIGN OWNERSHIP
FOREIGN TECHNOLOGY
FOREIGN-OWNED FIRMS
GLOBAL ECONOMY
HOME COUNTRIES
HOME COUNTRY
HOST COUNTRIES
HOST COUNTRY
HUMAN CAPITAL
INCOME
INDUSTRIAL DEVELOPMENT
INTER-FIRM LINKAGES
INTERNATIONAL BANK
INTERNATIONAL DEVELOPMENT
INTERNATIONAL ECONOMICS
INTERNATIONAL TRADE
INVENTORY
INVESTMENT PROMOTION
JOINT VENTURES
KNOWLEDGE DIFFUSION
LEASING
LICENSING
LOCAL ECONOMY
LOCAL MARKET
LOW-INCOME COUNTRIES
MANUFACTURING FIRMS
MANUFACTURING SECTOR
MARKET FORCES
MARKET SEGMENTATION
MARKET SHARE
MEDIUM-SIZED FIRMS
MULTINATIONAL
MULTINATIONAL ENTERPRISES
MULTINATIONALS
NATURAL RESOURCES
NEW PRODUCTS
OPEN ECONOMIES
OUTPUT
POSITIVE COEFFICIENT
PRODUCT QUALITY
REGIONAL INTEGRATION
RETAIL
SALES
SKILLED WORKERS
SUBSTITUTE
SUPPLIER
SUPPLIERS
TAX
TECHNOLOGY DIFFUSION
TECHNOLOGY GAP
TECHNOLOGY GAPS
TECHNOLOGY INTENSITY
TECHNOLOGY SPILLOVERS
TECHNOLOGY TRANSFER
TOTAL SALES
TRANSITION COUNTRIES
TRANSITION ECONOMIES
TURNOVER
VERTICAL LINKAGES
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
Description
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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