Estimation of Foreign MNEs spillovers in Spain

Barge-Gil, Andrés and López, Alberto and Núñez-Sánchez, Ramón (2017): Estimation of Foreign MNEs spillovers in Spain.

Abstract

Using Spanish firrm-level data, we estimate productivity effects of spillovers from foreign multinationals to domestic firms in both manufacturing and service sectors. We find evidence of a positive productivity effect from multinationals on domestic firms operating in the same industry. Analyzing inter-industry linkages, we find evidence consistent with positive productivity spillovers from forward linkages (i.e., from suppliers to buyers) and negative productivity spillovers from backward linkages (i.e., from buyers to suppliers). Our main results hold when analyzing differences between multinational and domestic firms, and for periods of economic growth and recession, although some differences arise. Interestingly, we find evidence supporting a positive role of spillovers during the last recession period.

• Item Type: MPRA Paper
• Language: English
• Keywords: Multinational firms, FDI, spillovers, economic recession.
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; L - Industrial Organization > L5 - Regulation and Industrial Policy > L53 - Enterprise Policy; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

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