Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment
Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local interm...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/09/20251617/local-intermediate-inputs-shared-supplier-spillovers-foreign-directbrinvestment http://hdl.handle.net/10986/20366 |
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okr-10986-203662021-04-23T14:03:55Z Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment Kee, Hiau Looi ACCOUNTING AGGREGATE DEMAND AVERAGE PRODUCTIVITY CAPITAL INVESTMENT CLIMATE CHANGE COMMON MARKET COMMON MARKETS CONSTRUCTION CUSTOMS DEVELOPMENT POLICY E-MAIL ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION EQUIPMENT EXPORT MARKETS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT GDP GLOBALIZATION GOVERNMENT POLICIES GROWTH MODELS INPUT PRICES INTERMEDIATE GOODS INTERNATIONAL TRADE MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET COMPETITION MARKET SHARE MARKET SHARES MATERIAL OPEN ACCESS OPEN ECONOMY OVERSEAS BUYERS OWNERSHIP STRUCTURE PECUNIARY EXTERNALITIES PERFORMANCE INDICATORS POLITICAL ECONOMY POSITIVE EXTERNALITIES PRICE INDEX PRICE INDEXES PRICE INDICES PRICE LEVEL PRODUCT QUALITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH REGRESSION ANALYSIS RESULT RESULTS RETURNS TO SCALE SEARCH SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CHAIN TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TOTAL SALES TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY UNEMPLOYMENT USES VALUE ADDED WAGES Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms. 2014-10-06T20:08:44Z 2014-10-06T20:08:44Z 2014-09 http://documents.worldbank.org/curated/en/2014/09/20251617/local-intermediate-inputs-shared-supplier-spillovers-foreign-directbrinvestment http://hdl.handle.net/10986/20366 English en_US Policy Research Working Paper;No. 7050 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGGREGATE DEMAND AVERAGE PRODUCTIVITY CAPITAL INVESTMENT CLIMATE CHANGE COMMON MARKET COMMON MARKETS CONSTRUCTION CUSTOMS DEVELOPMENT POLICY ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION EQUIPMENT EXPORT MARKETS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT GDP GLOBALIZATION GOVERNMENT POLICIES GROWTH MODELS INPUT PRICES INTERMEDIATE GOODS INTERNATIONAL TRADE MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET COMPETITION MARKET SHARE MARKET SHARES MATERIAL OPEN ACCESS OPEN ECONOMY OVERSEAS BUYERS OWNERSHIP STRUCTURE PECUNIARY EXTERNALITIES PERFORMANCE INDICATORS POLITICAL ECONOMY POSITIVE EXTERNALITIES PRICE INDEX PRICE INDEXES PRICE INDICES PRICE LEVEL PRODUCT QUALITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH REGRESSION ANALYSIS RESULT RESULTS RETURNS TO SCALE SEARCH SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CHAIN TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TOTAL SALES TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY UNEMPLOYMENT USES VALUE ADDED WAGES |
| spellingShingle |
ACCOUNTING AGGREGATE DEMAND AVERAGE PRODUCTIVITY CAPITAL INVESTMENT CLIMATE CHANGE COMMON MARKET COMMON MARKETS CONSTRUCTION CUSTOMS DEVELOPMENT POLICY ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION EQUIPMENT EXPORT MARKETS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT GDP GLOBALIZATION GOVERNMENT POLICIES GROWTH MODELS INPUT PRICES INTERMEDIATE GOODS INTERNATIONAL TRADE MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET COMPETITION MARKET SHARE MARKET SHARES MATERIAL OPEN ACCESS OPEN ECONOMY OVERSEAS BUYERS OWNERSHIP STRUCTURE PECUNIARY EXTERNALITIES PERFORMANCE INDICATORS POLITICAL ECONOMY POSITIVE EXTERNALITIES PRICE INDEX PRICE INDEXES PRICE INDICES PRICE LEVEL PRODUCT QUALITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH REGRESSION ANALYSIS RESULT RESULTS RETURNS TO SCALE SEARCH SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CHAIN TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TOTAL SALES TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY UNEMPLOYMENT USES VALUE ADDED WAGES Kee, Hiau Looi Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| relation |
Policy Research Working Paper;No. 7050 |
| description |
Trade liberalizations have been shown to
improve domestic firms' performance through the new
varieties of imported intermediate inputs. This paper uses a
unique, representative sample of Bangladeshi garment firms
to highlight that local intermediate inputs may also enhance
domestic firms' performance, through the shared
supplier spillovers of foreign direct investment (FDI)
firms. An exogenous EU trade policy shock is shown to cause
some FDI firms in Bangladesh to expand, which led to better
performance of the domestic firms that shared their
suppliers. Overall, the shared supplier spillovers of FDI
explain 1/4 of the product scope expansion and 1/3 of the
productivity gains within domestic firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kee, Hiau Looi |
| author_facet |
Kee, Hiau Looi |
| author_sort |
Kee, Hiau Looi |
| title |
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| title_short |
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| title_full |
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| title_fullStr |
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| title_full_unstemmed |
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment |
| title_sort |
local intermediate inputs and the shared supplier spillovers of foreign direct investment |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/09/20251617/local-intermediate-inputs-shared-supplier-spillovers-foreign-directbrinvestment http://hdl.handle.net/10986/20366 |
| _version_ |
1764445164141543424 |