Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile
During the 1990s, foreign direct investment in producer service sectors in Latin America was massive. Such investment may increase the quality of services, reduce their cost, and offer opportunities for knowledge spillovers to downstream users of t...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/09/9891604/foreign-direct-investment-services-manufacturing-productivity-growth-evidence-chile http://hdl.handle.net/10986/6947 |
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okr-10986-69472021-04-23T14:02:32Z Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile Fernandes, Ana M. Paunov, Caroline ACCOUNTING ACCOUNTING SERVICES ADVERTISING AFFILIATES BANKING INDUSTRY BANKING SECTOR BEST PRACTICE BEST PRACTICES BOOK VALUE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYER BUYERS CAPABILITIES CAPABILITY CAPITALIZATION COMMUNICATION COSTS CONSULTING SERVICES CURRENCY UNITS DEMONSTRATION EFFECTS DISPUTE RESOLUTION ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY ELECTRONIC BANKING EMERGING MARKET ECONOMIES EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL PRODUCTS FINANCIAL SERVICES FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT GLOBAL ECONOMY INDUSTRIAL ECONOMICS INFORMATION TECHNOLOGY INNOVATION INNOVATION POLICY INNOVATION SYSTEMS INSTITUTION INSURANCE INTANGIBLE ASSETS INTERNATIONAL TRADE INVENTORY INVESTMENTS IN INFORMATION TECHNOLOGY KNOW-HOW LEARNING LICENSES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MARKET SHARE MARKET SHARES MARKETING NATURAL RESOURCES NETWORKS OUTSOURCING PRIVATIZATION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PUBLISHING QUALITY OF SERVICES R&D REGULATORY SYSTEM RELIABILITY RELIABILITY OF SERVICE RELIABILITY OF SERVICES RESULT RESULTS SEARCH SUBSIDIARIES TACIT KNOWLEDGE TECHNICAL ASSISTANCE TECHNICAL SKILLS TECHNOLOGY TRANSFER TELECOM TELECOM SECTOR TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TELECOMMUNICATIONS POLICY TELEPHONE TELEPHONE LINES TEXT TIME PERIODS TRANSITION ECONOMIES TRANSPORT UNIQUE IDENTIFIER USER USERS USES WEB WORLD TRADE During the 1990s, foreign direct investment in producer service sectors in Latin America was massive. Such investment may increase the quality of services, reduce their cost, and offer opportunities for knowledge spillovers to downstream users of the services. This paper examines the effects of foreign direct investment in services on manufacturing productivity growth in Chile between 1992 and 2004. The authors estimate an extended production function where plant output growth depends on input growth and a weighted measure of foreign direct investment in services. The novelty of the approach is that the authors are able to assess the intensity of usage of various types of services at the plant level and use that information in the estimation of the importance of foreign direct investment in those services. The econometric results show a positive and significant effect of foreign direct investment in services on productivity growth of Chilean manufacturing plants which is robust to a multitude of tests. The economic impact of the estimates is that forward linkages from foreign direct investment in services account for almost 5 percent of the observed increase in Chilean manufacturing productivity growth during the sample period. This evidence therefore suggests that reducing the barriers restricting foreign direct investment in services in many developing economies may help accelerate productivity growth in their manufacturing sectors. 2012-06-01T22:04:40Z 2012-06-01T22:04:40Z 2008-09 http://documents.worldbank.org/curated/en/2008/09/9891604/foreign-direct-investment-services-manufacturing-productivity-growth-evidence-chile http://hdl.handle.net/10986/6947 English Policy Research Working Paper; No. 4730 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 Latin America & Caribbean Chile |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING SERVICES ADVERTISING AFFILIATES BANKING INDUSTRY BANKING SECTOR BEST PRACTICE BEST PRACTICES BOOK VALUE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYER BUYERS CAPABILITIES CAPABILITY CAPITALIZATION COMMUNICATION COSTS CONSULTING SERVICES CURRENCY UNITS DEMONSTRATION EFFECTS DISPUTE RESOLUTION ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY ELECTRONIC BANKING EMERGING MARKET ECONOMIES EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL PRODUCTS FINANCIAL SERVICES FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT GLOBAL ECONOMY INDUSTRIAL ECONOMICS INFORMATION TECHNOLOGY INNOVATION INNOVATION POLICY INNOVATION SYSTEMS INSTITUTION INSURANCE INTANGIBLE ASSETS INTERNATIONAL TRADE INVENTORY INVESTMENTS IN INFORMATION TECHNOLOGY KNOW-HOW LEARNING LICENSES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MARKET SHARE MARKET SHARES MARKETING NATURAL RESOURCES NETWORKS OUTSOURCING PRIVATIZATION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PUBLISHING QUALITY OF SERVICES R&D REGULATORY SYSTEM RELIABILITY RELIABILITY OF SERVICE RELIABILITY OF SERVICES RESULT RESULTS SEARCH SUBSIDIARIES TACIT KNOWLEDGE TECHNICAL ASSISTANCE TECHNICAL SKILLS TECHNOLOGY TRANSFER TELECOM TELECOM SECTOR TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TELECOMMUNICATIONS POLICY TELEPHONE TELEPHONE LINES TEXT TIME PERIODS TRANSITION ECONOMIES TRANSPORT UNIQUE IDENTIFIER USER USERS USES WEB WORLD TRADE |
| spellingShingle |
ACCOUNTING ACCOUNTING SERVICES ADVERTISING AFFILIATES BANKING INDUSTRY BANKING SECTOR BEST PRACTICE BEST PRACTICES BOOK VALUE BUSINESS ENVIRONMENT BUSINESS SERVICES BUYER BUYERS CAPABILITIES CAPABILITY CAPITALIZATION COMMUNICATION COSTS CONSULTING SERVICES CURRENCY UNITS DEMONSTRATION EFFECTS DISPUTE RESOLUTION ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY ELECTRONIC BANKING EMERGING MARKET ECONOMIES EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL PRODUCTS FINANCIAL SERVICES FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN INVESTMENT GLOBAL ECONOMY INDUSTRIAL ECONOMICS INFORMATION TECHNOLOGY INNOVATION INNOVATION POLICY INNOVATION SYSTEMS INSTITUTION INSURANCE INTANGIBLE ASSETS INTERNATIONAL TRADE INVENTORY INVESTMENTS IN INFORMATION TECHNOLOGY KNOW-HOW LEARNING LICENSES MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MARKET SHARE MARKET SHARES MARKETING NATURAL RESOURCES NETWORKS OUTSOURCING PRIVATIZATION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PUBLISHING QUALITY OF SERVICES R&D REGULATORY SYSTEM RELIABILITY RELIABILITY OF SERVICE RELIABILITY OF SERVICES RESULT RESULTS SEARCH SUBSIDIARIES TACIT KNOWLEDGE TECHNICAL ASSISTANCE TECHNICAL SKILLS TECHNOLOGY TRANSFER TELECOM TELECOM SECTOR TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TELECOMMUNICATIONS POLICY TELEPHONE TELEPHONE LINES TEXT TIME PERIODS TRANSITION ECONOMIES TRANSPORT UNIQUE IDENTIFIER USER USERS USES WEB WORLD TRADE Fernandes, Ana M. Paunov, Caroline Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| geographic_facet |
Latin America & Caribbean Chile |
| relation |
Policy Research Working Paper; No. 4730 |
| description |
During the 1990s, foreign direct
investment in producer service sectors in Latin America was
massive. Such investment may increase the quality of
services, reduce their cost, and offer opportunities for
knowledge spillovers to downstream users of the services.
This paper examines the effects of foreign direct investment
in services on manufacturing productivity growth in Chile
between 1992 and 2004. The authors estimate an extended
production function where plant output growth depends on
input growth and a weighted measure of foreign direct
investment in services. The novelty of the approach is that
the authors are able to assess the intensity of usage of
various types of services at the plant level and use that
information in the estimation of the importance of foreign
direct investment in those services. The econometric results
show a positive and significant effect of foreign direct
investment in services on productivity growth of Chilean
manufacturing plants which is robust to a multitude of
tests. The economic impact of the estimates is that forward
linkages from foreign direct investment in services account
for almost 5 percent of the observed increase in Chilean
manufacturing productivity growth during the sample period.
This evidence therefore suggests that reducing the barriers
restricting foreign direct investment in services in many
developing economies may help accelerate productivity growth
in their manufacturing sectors. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fernandes, Ana M. Paunov, Caroline |
| author_facet |
Fernandes, Ana M. Paunov, Caroline |
| author_sort |
Fernandes, Ana M. |
| title |
Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| title_short |
Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| title_full |
Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| title_fullStr |
Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| title_full_unstemmed |
Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile |
| title_sort |
foreign direct investment in services and manufacturing productivity growth : evidence for chile |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/09/9891604/foreign-direct-investment-services-manufacturing-productivity-growth-evidence-chile http://hdl.handle.net/10986/6947 |
| _version_ |
1764401398988931072 |