RUB Research School

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Author
Name Fatima, Syeda Tamkeen
Research field /
Career stage doctoral researcher
Home university/institution Ruhr-Universität Bochum (RUB)
Department/Research unit at home university/institution Social Science
Chair/Working group at home institution Institute for Development Research and Development Policy

International activity
Country Germany
Location Munich
University /
Fund Research School PR.INT
Type of activity conference visit
Period No dates specified
Keywords /
Report This paper analyzes productivity spillovers from foreign direct investment (FDI) using Turkish firm level data for a more recent time period, 2003-2010. The empirical model is derived from endogenous growth theory whereby growth in total factor productivity (TFP) is modeled by the rate of technological progress which in turn is partly determined by technology transfers and spillovers from its international contacts. Given this theoretical framework we evaluate the impact of FDI onto the firm level productivity via the channels of horizontal and vertical linkages. The empirical results show that horizontal linkages decreases productivity whereas vertical linkages exert a positive impact onto local productivity levels thereby drawing attention of policy makers towards strenghtening of supplier-buyer relationship between local and multinationals in order tomaximize the benefits from FDI. This study also acknowledges the heterogeneity of local (foreign)firms and their differential capacity to absorb (exude) the FDI induced externalities.
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