Productivity spillovers from foreign direct investment: Evidence from UK industry level panel data

Xiaming Liu, Pamela Siler, Chengqi Wang, Yingqi Wei

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines intra-industry productivity spillovers from foreign direct investment (FDI) in the UK manufacturing sector. The empirical analysis uses panel data for 48 UK industries over the period 1991-1995. A major contribution is empirical evidence on spillover effects in situations where the host country is developed. The results indicate that the very presence of FDI has a positive spillover impact on the productivity of UK-owned firms. The analysis also shows that the extent to which local firms benefit from the introduction of advanced technology depends largely on their own technological capabilities.

Original languageEnglish
Pages (from-to)407-425
Number of pages19
JournalJournal of International Business Studies
Volume31
Issue number3
DOIs
Publication statusPublished - 1 Sep 2000

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