SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

Abstract: This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a positive and statistically significant spillover effect only in a sub-sample of locally-owned plants with moderate technology gaps vis-a-vis foreign firms. Our interpretation is that there are firm-specific differences in the ability to absorb spillovers, and that these may explain some of the contradictory findings of earlier spillover studies.

Keywords: Foreign direct investment; multinational corporations; productivity; spillovers

JEL-codes: F23; O49

12 pages, January 1994

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Published as

Ari Kokko, Ruben Tansini and Mario Zejan, (1996), 'Productivity Spillovers from FDI in the Uruguayan Manufacturing Sector', Journal of Development Studies, vol 32, pages 602-611

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