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Weltwirtschaftliches Archiv

, Volume 138, Issue 3, pp 459–481 | Cite as

Foreign direct investment and productivity spillovers: Evidence from the Spanish experience

  • Salvador Barrios
  • Eric Strobl
Articles

Abstract

Foreign Direct Investment and Productivity Spillovers: Evidence from the Spanish Experience. — The aim of this paper is to analyse the impact of foreign direct investment (FDI) on firms’ productivity using a panel of Spanish manufacturing firms for the period 1990–1998. Firstly, we show that for countries, like Spain, that are undergoing significant structural changes over the period in question it is important to control for both time-invariant as well as time-variant sectoral characteristics. Secondly, we confirm previous findings that one needs to take into account the “absorptive capacity” of firms when considering whether they are able to avail of externalities associated with FDI presence. For the Spanish case we find that only firms with sufficient levels of such capacity experience positive spillovers.

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© Institut für Weltwirtschaft an der Universität Kiel 2002

Authors and Affiliations

  • Salvador Barrios
  • Eric Strobl

There are no affiliations available

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