Research Article
BibTex RIS Cite
Year 2016, Volume: 5 Issue: 4, 351 - 359, 30.12.2016
https://doi.org/10.17261/Pressacademia.2017.357

Abstract

References

  • Aitken, B.J. & Harrison, A.E. 1999, "Do Domestic Firms Benefit From Foreign Direct Investment? Evidence from Panel Data", American Economic Review, vol. 89, no. 3, pp. 605-618.
  • Ayyagari, M. & Kosova, R. 2008, "Does FDI facilitate Domestic Entry? Evidence from the Czech Republic", Can be downloaded at: http://ssrn.com/abstract=891781 (retrieved 20.09. 2014).
  • Berlemann, M. & Wesselhöft, J. E. 2012, "Estimating Aggregate Capital Stocks Using the Perpetual Inventory Method", Working Paper, no. 125.
  • Beugelsdijk, S., Smeets, R. & Zwinkels, R. 2008, "The Impact of Horizontal and Vertical FDI on Host’s Country Economic Growth", International Business Review, no. 17, pp. 452-472.
  • Blalock, G. & Gertler, P. 2008, "Welfare Gains from Foreign Direct Investment through Technology Transfer to Local Suppliers", Journal of International Economics, no. 74, pp. 402-421.
  • Blomstrom, M. & Kokko, A. 1998, "Multinational Corporations and Spillovers", Journal of Economic Surveys, vol. 12, no. 2, pp. 1-31.
  • Colen, L., Maertens, M. & Swinnen, J. 2008, "Foreign Direct Investment as an Engine for Economic Growth and Human Development: A Review of the Arguments and Empirical Evidence", Working Paper, no. 16, pp. 1-48.
  • De Mello, J. 1997, "Foreign Direct Investment in Developing Countries and Growth: A Selective Survey", Journal of Development Studies, vol. 1, no. 34, pp. 1-34.
  • Driffield, N., Munday, M. & Roberts, A. 2002, "Foreign Direct Investment, Transactions Linkages, and the Performance of the Domestic Sector", International Journal of the Economics of Business, vol. 9, no. 3, pp. 335-351.
  • Griliches, Z. & Mairesse, J. 1995, "Production Functions: the Search for Identification", NBER Working Paper, no. 5067.
  • Hale, G. & Long, C. 2007, "Are there Productivity Spillovers from Foreign Direct Investment in China? ", Working Paper Series, Federal Reserve Bank of San Francisco.
  • Hall, B.H. & Mairesse, J. 1995, "Exploring the Relationship between R&D and Productivity in French Manufacturing Firms", Journal of Econometrics, no. 65, pp. 263-293.
  • Haskel, J.E., Pereira, S.C. & Slaughter, M.J. 2002, "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms? ", NBER Working Paper, no. 8724.
  • Iyer, K. & Stevens, P. 2009, "Productivity Spillovers from Foreign Direct Investment in New Zealand Manufacturing", The New Zealand Association of Economists (NZAE) Conference: 1-3 July- Wellington.
  • Javorcik, S.B. 2004, "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages", The American Economic Review, vol. 94, no. 3, pp. 605-627.
  • Keller, W. 2004, "International Technology Diffusion", Journal of Economic Literature, no. XLII, pp. 752-782.
  • Kolasa, M. 2008, "How does FDI Inflow Affect Productivity of Domestic Firms? The Role of Horizontal and Vertical Spillovers, Absorptive Capacity and Competition", The Journal of International Trade and Economic Development: An International and Comparative Review, vol. 17, no. 1, pp. 155-173.
  • Konings, J. 2001, "The Effects of Direct Foreign Investment on Domestic Firms: Evidence from Firm Level Panel Data in Emerging Economies", Economics of Transition, vol. 9, no. 3, pp. 619-633.
  • Köymen, S. & Sayek, S. 2010, "The Role of Human Capital In Productivity Spillovers from FDI: An Empirical Analysis on Turkish Manufacturing Firms", Discussion Papers, Bilkent University, no. 10-03.
  • Liang, F.H. 2008, "Does Foreign Direct Investment Improve the Productivity of Domestic Firms? Technology Spillovers, Industry Linkages, and Firm Capabilities", Can be downloaded at: http://ssrn.com/abstract=1479837 (retrieved 12.04. 2014).
  • Mishra, B.R. 2011, "Spill-over Effects of Foreign Direct Investment: An Econometric Study of Indian Firms", Munich Personal RePEc Archive (MPRA), no. 37759.
  • Moulton, B.R. 1990, "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units", The Review of Economics and Statistics, vol. 72, no. 2, pp. 334-338.
  • Reganati, F. & Sica, E. 2005, "Do Domestic Firms Benefit from the Presence of MNEs? The Case of the Italian Manufacturing Sector", Dipartimento di Scienze Economiche, Matematiche e Statistiche, no. 23, pp. 1-15.
  • Schoors, K. & Van der Tol, B. 2002, "Foreign Direct Investment Spillovers within and between Sectors: Evidence from Hungarian Data", Working Paper, no. 157, pp. 1-29.
  • Stancik, J. 2007, "Horizontal and Vertical FDI Spillovers: Recent Evidence from the Czech Republic", Working Paper Series, no. 340, pp. 1-36.
  • Taymaz, E. & Yılmaz, K. 2008, "Foreign Direct Investment and Productivity Spillovers", Working Papers and Koc University.
  • Turkish Statistical Institute, Annual Industry and Service Statistics, TURKSTAT, Ankara.
  • Turkish Statistical Institute, Annual Trade Statistics, TURKSTAT, Ankara.
  • Xu, X. & Sheng, Y. 2012, "Productivity Spillovers from Foreign Direct Investment: Firm-Level Evidence from China", World Development, vol. 40, no. 1, pp. 62-74.

EFFECT OF FIRM’S EXPORT-ORIENTATION ON BACKWARD SPILLOVERS OF FOREIGN DIRECT INVESTMENT IN TURKISH MANUFACTURING INDUSTRY

Year 2016, Volume: 5 Issue: 4, 351 - 359, 30.12.2016
https://doi.org/10.17261/Pressacademia.2017.357

Abstract

This study examines the direct and indirect or
spillover effects (horizontal and vertical) of FDI with special emphasis on the
backward spillover effects. My main purpose is to examine whether the effect of
backward spillovers generated by export oriented foreign owned firms is larger
on productivity of domestic firms than backward spillover effect generated by
domestic oriented foreign owned firms by using firm-level data for the years
2003-2011. With this purpose, value added and total factor productivity
equations with two different measures of backward spillover effects for Turkish
manufacturing industry firms are estimated by using the panel data method. My
empirical results are consistent with the existence of positive horizontal and
vertical spillovers of FDI. My estimation results also show that the backward
spillover generated by export oriented foreign owned firms is larger than the
backward spillover generated by domestic oriented foreign owned firms. 

References

  • Aitken, B.J. & Harrison, A.E. 1999, "Do Domestic Firms Benefit From Foreign Direct Investment? Evidence from Panel Data", American Economic Review, vol. 89, no. 3, pp. 605-618.
  • Ayyagari, M. & Kosova, R. 2008, "Does FDI facilitate Domestic Entry? Evidence from the Czech Republic", Can be downloaded at: http://ssrn.com/abstract=891781 (retrieved 20.09. 2014).
  • Berlemann, M. & Wesselhöft, J. E. 2012, "Estimating Aggregate Capital Stocks Using the Perpetual Inventory Method", Working Paper, no. 125.
  • Beugelsdijk, S., Smeets, R. & Zwinkels, R. 2008, "The Impact of Horizontal and Vertical FDI on Host’s Country Economic Growth", International Business Review, no. 17, pp. 452-472.
  • Blalock, G. & Gertler, P. 2008, "Welfare Gains from Foreign Direct Investment through Technology Transfer to Local Suppliers", Journal of International Economics, no. 74, pp. 402-421.
  • Blomstrom, M. & Kokko, A. 1998, "Multinational Corporations and Spillovers", Journal of Economic Surveys, vol. 12, no. 2, pp. 1-31.
  • Colen, L., Maertens, M. & Swinnen, J. 2008, "Foreign Direct Investment as an Engine for Economic Growth and Human Development: A Review of the Arguments and Empirical Evidence", Working Paper, no. 16, pp. 1-48.
  • De Mello, J. 1997, "Foreign Direct Investment in Developing Countries and Growth: A Selective Survey", Journal of Development Studies, vol. 1, no. 34, pp. 1-34.
  • Driffield, N., Munday, M. & Roberts, A. 2002, "Foreign Direct Investment, Transactions Linkages, and the Performance of the Domestic Sector", International Journal of the Economics of Business, vol. 9, no. 3, pp. 335-351.
  • Griliches, Z. & Mairesse, J. 1995, "Production Functions: the Search for Identification", NBER Working Paper, no. 5067.
  • Hale, G. & Long, C. 2007, "Are there Productivity Spillovers from Foreign Direct Investment in China? ", Working Paper Series, Federal Reserve Bank of San Francisco.
  • Hall, B.H. & Mairesse, J. 1995, "Exploring the Relationship between R&D and Productivity in French Manufacturing Firms", Journal of Econometrics, no. 65, pp. 263-293.
  • Haskel, J.E., Pereira, S.C. & Slaughter, M.J. 2002, "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms? ", NBER Working Paper, no. 8724.
  • Iyer, K. & Stevens, P. 2009, "Productivity Spillovers from Foreign Direct Investment in New Zealand Manufacturing", The New Zealand Association of Economists (NZAE) Conference: 1-3 July- Wellington.
  • Javorcik, S.B. 2004, "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages", The American Economic Review, vol. 94, no. 3, pp. 605-627.
  • Keller, W. 2004, "International Technology Diffusion", Journal of Economic Literature, no. XLII, pp. 752-782.
  • Kolasa, M. 2008, "How does FDI Inflow Affect Productivity of Domestic Firms? The Role of Horizontal and Vertical Spillovers, Absorptive Capacity and Competition", The Journal of International Trade and Economic Development: An International and Comparative Review, vol. 17, no. 1, pp. 155-173.
  • Konings, J. 2001, "The Effects of Direct Foreign Investment on Domestic Firms: Evidence from Firm Level Panel Data in Emerging Economies", Economics of Transition, vol. 9, no. 3, pp. 619-633.
  • Köymen, S. & Sayek, S. 2010, "The Role of Human Capital In Productivity Spillovers from FDI: An Empirical Analysis on Turkish Manufacturing Firms", Discussion Papers, Bilkent University, no. 10-03.
  • Liang, F.H. 2008, "Does Foreign Direct Investment Improve the Productivity of Domestic Firms? Technology Spillovers, Industry Linkages, and Firm Capabilities", Can be downloaded at: http://ssrn.com/abstract=1479837 (retrieved 12.04. 2014).
  • Mishra, B.R. 2011, "Spill-over Effects of Foreign Direct Investment: An Econometric Study of Indian Firms", Munich Personal RePEc Archive (MPRA), no. 37759.
  • Moulton, B.R. 1990, "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units", The Review of Economics and Statistics, vol. 72, no. 2, pp. 334-338.
  • Reganati, F. & Sica, E. 2005, "Do Domestic Firms Benefit from the Presence of MNEs? The Case of the Italian Manufacturing Sector", Dipartimento di Scienze Economiche, Matematiche e Statistiche, no. 23, pp. 1-15.
  • Schoors, K. & Van der Tol, B. 2002, "Foreign Direct Investment Spillovers within and between Sectors: Evidence from Hungarian Data", Working Paper, no. 157, pp. 1-29.
  • Stancik, J. 2007, "Horizontal and Vertical FDI Spillovers: Recent Evidence from the Czech Republic", Working Paper Series, no. 340, pp. 1-36.
  • Taymaz, E. & Yılmaz, K. 2008, "Foreign Direct Investment and Productivity Spillovers", Working Papers and Koc University.
  • Turkish Statistical Institute, Annual Industry and Service Statistics, TURKSTAT, Ankara.
  • Turkish Statistical Institute, Annual Trade Statistics, TURKSTAT, Ankara.
  • Xu, X. & Sheng, Y. 2012, "Productivity Spillovers from Foreign Direct Investment: Firm-Level Evidence from China", World Development, vol. 40, no. 1, pp. 62-74.
There are 29 citations in total.

Details

Journal Section Articles
Authors

Felor Ebghaei

Publication Date December 30, 2016
Published in Issue Year 2016 Volume: 5 Issue: 4

Cite

APA Ebghaei, F. (2016). EFFECT OF FIRM’S EXPORT-ORIENTATION ON BACKWARD SPILLOVERS OF FOREIGN DIRECT INVESTMENT IN TURKISH MANUFACTURING INDUSTRY. Journal of Business Economics and Finance, 5(4), 351-359. https://doi.org/10.17261/Pressacademia.2017.357

Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.



Ethics Policy - JBEF applies the standards of Committee on Publication Ethics (COPE). JBEF is committed to the academic community ensuring ethics and quality of manuscripts in publications. Plagiarism is strictly forbidden and the manuscripts found to be plagiarized will not be accepted or if published will be removed from the publication. Authors must certify that their manuscripts are their original work. Plagiarism, duplicate, data fabrication and redundant publications are forbidden. The manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).


Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.