Sandwiches from 12:15, Seminar at 12:30
We quantify foreign direct investment (FDI) spillovers by comparing changes in total factor productivity (TFP) among domestic plants in districts where a large greenfield foreign plant produced and districts where FDI was licensed but not yet operational. Over the four years starting with the year of the opening, TFP of domestic plants is 8 percent higher in treated districts. Using an alternative strategy exploiting the assignment of land for FDI by the Ethiopian Government, we obtain similar results. Exposure to FDI enhances domestic plants’: (i) production processes; (ii) managerial and organizational practices; and (iii) knowledge about exporting. In terms of mechanisms, we find suggestive evidence of an important role of labor mobility from foreign to domestic plants and of communication externalities.
Presented by:
Michel Serafinelli (Department of Economics)
Date & time:
May 15, 2019 11:30 am - May 15, 2019 12:30 pm
Venue:
2N2.4.16 - ISER Large Seminar Room
Internal seminars home