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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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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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 |
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okr-10986-155702021-04-23T14:03:19Z Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels Winkler, Deborah 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 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. 2013-09-04T16:01:08Z 2013-09-04T16:01:08Z 2013-04 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 English en_US Policy Research Working Paper;No. 6424 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa East Asia and Pacific Latin America & Caribbean |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
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 |
| spellingShingle |
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 Winkler, Deborah Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| geographic_facet |
Africa East Asia and Pacific Latin America & Caribbean |
| relation |
Policy Research Working Paper;No. 6424 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Winkler, Deborah |
| author_facet |
Winkler, Deborah |
| author_sort |
Winkler, Deborah |
| title |
Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| title_short |
Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| title_full |
Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| title_fullStr |
Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| title_full_unstemmed |
Potential and Actual FDI Spillovers in Global Value Chains : The Role of Foreign Investor Characteristics, Absorptive Capacity and Transmission Channels |
| title_sort |
potential and actual fdi spillovers in global value chains : the role of foreign investor characteristics, absorptive capacity and transmission channels |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
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 |
| _version_ |
1764429427146489856 |