International Linkages and Productivity at the Plant Level: Foreign Direct Investment, Exports, Imports and Licensing

Posted: 21 Jul 2007 Last revised: 27 Aug 2013

See all articles by Mahmut Yasar

Mahmut Yasar

University of Texas at Arlington - Department of Economics; Emory University - Department of Economics

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics; National Bureau of Economic Research (NBER); University of Hartford - Barney School of Business

Abstract

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

Suggested Citation

Yasar, Mahmut and Morrison Paul, Catherine J., International Linkages and Productivity at the Plant Level: Foreign Direct Investment, Exports, Imports and Licensing. Journal of International Economics, Vol. 71, No. 2, 2007, Available at SSRN: https://ssrn.com/abstract=1001968

Mahmut Yasar (Contact Author)

University of Texas at Arlington - Department of Economics ( email )

701 S. West Street
Arlington, TX 76019
United States

Emory University - Department of Economics ( email )

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
916-752-0469 (Phone)
916-752-5614 (Fax)

National Bureau of Economic Research (NBER)

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University of Hartford - Barney School of Business

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