Productivity Gains after Outward FDI: Evidence from Slovenia

50 Pages Posted: 20 Jan 2015

See all articles by Jože P. Damijan

Jože P. Damijan

University of Ljubljana, Slovenia - Department of International Economics

Stefaan Decramer

KU Leuven

Date Written: August 2014

Abstract

This paper analyzes whether firms that engage in outward foreign direct investment, experience productivity gains in their domestic plants. To this end, we apply the methodology of De Loecker (2013) to firm-level data on the Slovenian manufacturing industry from 1994 to 2002. Our findings indicate that firms that invested abroad experience a higher productivity growth than firms that did not, controlling for many relevant variables such as past productivity, export status and industry of the firm. The gains only occur for investments outside of former Yugoslavia. They are larger for initially more productive firms and only occur some years after the investment.

Suggested Citation

Damijan, Joze P. and Decramer, Stefaan, Productivity Gains after Outward FDI: Evidence from Slovenia (August 2014). Available at SSRN: https://ssrn.com/abstract=2552443 or http://dx.doi.org/10.2139/ssrn.2552443

Joze P. Damijan (Contact Author)

University of Ljubljana, Slovenia - Department of International Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia
+386 61 189 24 00 (Phone)
+386 61 189 26 98 (Fax)

Stefaan Decramer

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

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