Absorptive Capacity and FDI Spillovers: Evidence from Quantile Regressions. Issue 4 (8th August 2017)

• Record Type: Journal Article
• Authors: Fatima, Syeda Tamkeen
• Is Part Of: International trade journal. Volume 31:Issue 4(2017)
• Page Start: 360
• Page End: 385
• Publication Date: 2017-08-08
• Subjects: Absorptive capacity -- foreign direct investment -- productivity spillovers -- quantile regression -- Turkey; International trade -- Periodicals; Commerce -- Periodicals; International economic relations -- Periodicals; 382
• DOI: 10.1080/08853908.2017.1301277
• Languages: English
• ISSNs: 0885-3908

Abstract

ABSTRACT: Using Turkish firm-level data for the period 2003–2010, we look at the relationship between foreign direct investment, absorptive capacity, and spillovers at a disaggregated level, and analyze whether firms operating in different quantiles of the productivity distribution respond differently to foreign presence and changes in absorptive capacity. The results reveal that, for a given level of foreign presence, it pays to increase the absorptive capacity of firms operating in lower quantiles. When it comes to inter-industry spillovers, it is counterproductive to increase the absorptive capacity of firms already operating in higher quantiles, as this diverts resources from other productive activities.