NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Foreign Investment and Domestic Productivity: Identifying Knowledge Spillovers and Competition Effects

Christian Fons-Rosen, Sebnem Kalemli-Ozcan, Bent E. Sorensen, Carolina Villegas-Sanchez, Vadym Volosovych

NBER Working Paper No. 23643
Issued in August 2017, Revised in October 2018
NBER Program(s):International Finance and Macroeconomics Program

We study the impact of FDI on the productivity of host-country firms. FDI has positive spillovers only when foreign and domestic firms use similar technologies. Channeling FDI to sectors where firms share similar technology would significantly increase productivity spillovers from FDI. We show that inventor mobility across sectors is a key channel of technology transfer. To deal with endogeneity concerns we control for sectoral productivity growth, construct a Bartik-style instrument based on the productivity growth of neighboring countries, and exploit differences in knowledge flows across sectors captured by an asymmetric patent citation matrix.

download in pdf format
   (725 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23643

Users who downloaded this paper also downloaded* these:
Cohen, Hahn, Hall, Levitt, and Metcalfe w22627 Using Big Data to Estimate Consumer Surplus: The Case of Uber
Burger, Warnock, and Warnock w23628 The Effects of U.S. Monetary Policy on Emerging Market Economies' Sovereign and Corporate Bond Markets
Davis and van Wincoop w23671 Globalization and the Increasing Correlation between Capital Inflows and Outflows
Anderson, Larch, and Yotov w23757 Trade and Investment in the Global Economy
Baker, Currie, and Schwandt w23514 Mortality Inequality in Canada and the U.S.: Divergent or Convergent Trends?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us