Local intermediate inputs and the shared supplier spillovers of foreign direct investment

• 成果类型: Article
• 署名作者: Kee, Hiau Looi
• 署名单位: The World Bank
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2014.09.007
• 发表日期: 2015
• 页码: 56-71
• 关键词: intermediate inputs; Foreign direct investment; Product scope; Multi-product firms; PRODUCTIVITY; Local suppliers; Shared supplier spillovers

摘要

Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of PDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms. (C) 2014 Published by Elsevier B.V.