GEP Research Paper 07/26
Productivity spillovers through vertical linkages: Evidence from 17 OECD countries
Jürgen Bitzer, Ingo Geishecker and Holger Görg
Summary
This paper uses industry level data for 17 OECD countries to investigate the importance of horizontal and vertical spillovers. Results show that there is evidence for spillovers through backward linkages between multinationals and domestic firms for all countries, but that this effect is much higher for CEEC than other OECD countries.
Abstract
This paper extends the literature on productivity spillovers from inward FDI. We use comparable industry level data for 17 OECD countries and investigate the importance of horizontal and vertical spillovers, and differences between CEEC and other OECD countries. Results show that there is evidence for spillovers through vertical backward linkages between multinationals and domestic firms for all countries, but that this effect is much higher for CEEC than other OECD countries. We also find some evidence for positive effects from horizontal FDI, but these do not differ between the two country groups. Issued in July 2007
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