International Linkages and Productivity at the Plant Level: Foreign Direct Investment, Exports, Imports and Licensing
Posted: 21 Jul 2007 Last revised: 27 Aug 2013
Productivity growth may be affected particularly for developing countries by international linkages or technology transfer. We evaluate relationships between productivity and FDI, exports, imports and licensing for Turkish manufacturing plants in the apparel, textiles, and motor vehicles industries. We assess performance premia associated with these international technology transfer channels that control for plant size and location. We then use a structural model to allow for plant-specific input composition and interactions, estimated alternatively by quantile regression and semi-parametric techniques to recognize plant heterogeneity and to accommodate simultaneity and selection issues. Overall, we find that productivity is most closely related to foreign ownership, especially for larger plants and in combination with other forms of technology transfer, followed by exporting and then licensing.
Keywords: Importing, Foreign direct investment, Exporting, Firm performance, Technology transfer
JEL Classification: F10, F14, D21, L60
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