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Productivity Impacts and Spillovers from Foreign Ownership in the United Kingdom

Year: 2004

Type: article

Abstract: In this paper, we measure the indirect impact of FDI on the total factor productivity of domestic plants in a number of UK manufacturing industries, 1974–95, using a standard production-function-based approach. We use data from the UK ARD and information derived from UK input-output tables. Our results indicate that the competition and ‘absorption capacity’ effect at times outweighs potential benefits, leading to negative spillovers. We also find that inter-industry spillovers are generally more prevalent than intra-industry spillovers. We conclude that the nature of spillovers is such that measurement techniques traditionally adopted fail to explain adequately their complex and diverse nature.

Source: National Institute Economic Review

DOI: 10.1177/00279501041871006

Authors: Richard Harris, Catherine Robinson

Institutions: Newcastle University, National Institute of Economic and Social Research

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W2156649577

FWCI: 16.25

Cites: 39

Cited by: 70

Related to: 10