Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector

Foreign direct investment (FDI) from Multinational Enterprises (MNEs) can be beneficial to host countries, since it may generate positive externalities to domestic firms, contributing to the increase of their productivity. These positive effects can take place both within an industry ("horizont...

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Main Authors: Filippo Reganati, Edgardo Sica
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2007-12-01
Series:Journal of Business Economics and Management
Subjects:
Online Access:https://journals.vgtu.lt/index.php/JBEM/article/view/7601
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author Filippo Reganati
Edgardo Sica
author_facet Filippo Reganati
Edgardo Sica
author_sort Filippo Reganati
collection DOAJ
description Foreign direct investment (FDI) from Multinational Enterprises (MNEs) can be beneficial to host countries, since it may generate positive externalities to domestic firms, contributing to the increase of their productivity. These positive effects can take place both within an industry ("horizontal” spillovers) and across industries ("vertical” spillovers) as in the case of technology transfers to domestic suppliers or customers in the production chain. Using a firm‐level panel data, in this paper we analyse productivity spillovers from FDI in the Italian manufacturing firms both within and across industries. Our results suggest the existence of “vertical” spillovers and no evidence of “horizontal” ones. First Published Online: 14 Oct 2010
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spelling doaj.art-e5c2536ced81441caec231b061291ad92022-12-21T20:21:15ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332007-12-018410.3846/16111699.2007.9636178Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sectorFilippo Reganati0Edgardo Sica1Department of SEMS, Faculty of Economics, University of Foggia, Largo Papa Giovanni Paolo II n. 1, 71100 Foggia, ItalyDepartment of SEMS, Faculty of Economics, University of Foggia, Largo Papa Giovanni Paolo II n. 1, 71100 Foggia, ItalyForeign direct investment (FDI) from Multinational Enterprises (MNEs) can be beneficial to host countries, since it may generate positive externalities to domestic firms, contributing to the increase of their productivity. These positive effects can take place both within an industry ("horizontal” spillovers) and across industries ("vertical” spillovers) as in the case of technology transfers to domestic suppliers or customers in the production chain. Using a firm‐level panel data, in this paper we analyse productivity spillovers from FDI in the Italian manufacturing firms both within and across industries. Our results suggest the existence of “vertical” spillovers and no evidence of “horizontal” ones. First Published Online: 14 Oct 2010https://journals.vgtu.lt/index.php/JBEM/article/view/7601FDIMNEsProductivity SpilloversBackward LinkagesForward LinkagesItalian Manufacturing Sector
spellingShingle Filippo Reganati
Edgardo Sica
Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
Journal of Business Economics and Management
FDI
MNEs
Productivity Spillovers
Backward Linkages
Forward Linkages
Italian Manufacturing Sector
title Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
title_full Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
title_fullStr Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
title_full_unstemmed Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
title_short Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector
title_sort horizontaland vertical spillovers from fdi evidence from panel data for the italian manufacturing sector
topic FDI
MNEs
Productivity Spillovers
Backward Linkages
Forward Linkages
Italian Manufacturing Sector
url https://journals.vgtu.lt/index.php/JBEM/article/view/7601
work_keys_str_mv AT filipporeganati horizontalandverticalspilloversfromfdievidencefrompaneldatafortheitalianmanufacturingsector
AT edgardosica horizontalandverticalspilloversfromfdievidencefrompaneldatafortheitalianmanufacturingsector