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1 – 10 of over 1000Xiaozhuang Jiang, Licheng Sun and Yushi Wang
This paper aims to refine the mechanisms affecting the two-way technology spillover and carbon transfer interactions between supply chain enterprises, and to guide their reduction…
Abstract
Purpose
This paper aims to refine the mechanisms affecting the two-way technology spillover and carbon transfer interactions between supply chain enterprises, and to guide their reduction of carbon emissions.
Design/methodology/approach
This study formulates a supplier-led Stackelberg game model to explore the effects of the interactions between two-way technology spillover effects and carbon transfers in decentralized and centralized decision-making scenarios. The optimized Shapley value is introduced to coordinate across the supply chain and determine the overall profits lost in the decentralized scenario.
Findings
Emission reductions by the low-carbon manufacturer are negatively correlated with the carbon transfers. Vertical technology spillovers promote carbon reduction, whereas horizontal technology spillovers inhibit it. The vertical technology spillovers amplify the negative effects of the carbon transfers, whereas the horizontal technology spillovers alleviate these negative effects. When the vertical technology spillover effect is strong or the horizontal technology spillover effect is weak in the centralized scenario, the carbon reduction is negatively correlated with the carbon transfers. Conversely, when the vertical technology spillover effect is weak or the horizontal technology spillover effect is strong, the enterprise’s carbon reduction is positively correlated with the carbon transfers. An optimized Shapley value can coordinate the supply chain.
Originality/value
This study examines the effects of carbon transfers on enterprises from a micro-perspective and distinguishes between vertical and horizontal technology spillovers to explore how carbon transfers and different types of technology spillovers affect enterprises’ decisions to reduce carbon emissions.
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Pham Thi Bich Ngoc, Huynh Quoc Vu and Pham Dinh Long
This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages…
Abstract
Purpose
This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages and absorptive capacity effect on domestic firms' total factor productivity (TFP). It clarifies the spillover effect on domestic firms in accordance with industrial zones, business size, technology sector and geographical agglomeration, respectively.
Design/methodology/approach
The dataset used is based on Vietnamese manufacturing firms during 2011–2014, input–output (I–O) Table 2012. This paper is conducted in two steps: (1) TFP is estimated by using a semi-parametric approach developed by Levinsohn and Petrin (2003); (2) Regression with panel data for domestic firms, applying the fixed effect method.
Findings
In terms of domestic-oriented FDI (DFDI) enterprise group: TFP spillover through horizontal linkages is found negative for domestic firms but positive for those participating in export. Additionally, backward linkages have a negative impact on TFP for most domestic enterprises, except for those operating in the high-tech sector. In terms of export-oriented FDI (EFDI) enterprise group, horizontal linkages have a negative impact on domestic firms' TFP including domestic ones participating in export whereas backward linkage is an important channel with positive effects. Absorptive capacity enables firms to improve productivity through linkages with EFDI and DFDI enterprises. Exporters located in industrial zones or regions with numerous exporters can receive better impacts through backward linkages EFDI.
Originality/value
Comprehensively, this is the first paper to detect FDI heterogeneity in their behavior when entering a developing country like Vietnam. The added value in this study comes from the export ability of local firms which is in line with Melitz (2003) theory that they can excel in absorping the TFP spillover from competing with DFDI competitors or from supplying to EFDI enterprises. Moreover, the role of small and medium-sized enterprises (SMEs), low technology, high technology and learning by regions affecting the impact through both horizontal and vertical linkages are included for analysis.
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Chengqi Wang and Zhongxiu Zhao
The purpose of this paper is to examine foreign direct investment (FDI) spillovers accruing to Chinese local industry at both intra‐ and inter‐industry levels and how such effects…
Abstract
Purpose
The purpose of this paper is to examine foreign direct investment (FDI) spillovers accruing to Chinese local industry at both intra‐ and inter‐industry levels and how such effects vary with the nationality of the investor.
Design/methodology/approach
A panel dataset for Chinese industry over the period 2000‐2002 is employed for an augmented production function with external factors being defined as the influences of externalities in production.
Findings
The paper provides evidence of positive spillovers working both within industries and between industries, and evidence of vertical effects being more important than horizontal effects. The results also show that Western multinational enterprises (MNEs) generate more vertical spillovers than their overseas Chinese counterparts. This latter finding confirms that it is necessary to break down inward FDI by foreign ownership, as this makes a significant improvement over previous findings.
Research limitations/implications
Owing to data constraints, the design of the empirical framework does not allow a tightly defined source of potential vertical spillovers, i.e. a distinction of vertical spillovers through backward or forward linkages.
Practical implications
Given the strong evidence of vertical spillovers, the role of foreign MNEs in bringing local suppliers up‐to‐date with best practices should be counted amongst the policy benefits when judging whether it is appropriate to provide policy incentives to FDI. Policy effectiveness could be maximized at targeting specific types of foreign investor.
Originality/value
The paper assesses the relative importance of horizontal and vertical spillovers in a unified framework and the role of nationality of the investor.
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Anh Tuyet Nguyen, Vu Hiep Hoang, Phuong Thao Le, Thi Thanh Huyen Nguyen and Thi Thanh Van Pham
This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A…
Abstract
Purpose
This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.
Design/methodology/approach
This study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.
Findings
The results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.
Research limitations/implications
This study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.
Practical implications
The study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.
Originality/value
This study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373
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Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to…
Abstract
Purpose
Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry.
Design/methodology/approach
This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function.
Findings
The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry.
Research limitations/implications
The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework.
Practical implications
Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy.
Social implications
In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws.
Originality/value
The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.
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Yan Han, Rodney B.W. Smith and Laping Wu
This paper aims to examine the impact of six possible foreign direct investment (FDI) spillover channels on the total factor productivity (TFP) of Chinese agricultural enterprises…
Abstract
Purpose
This paper aims to examine the impact of six possible foreign direct investment (FDI) spillover channels on the total factor productivity (TFP) of Chinese agricultural enterprises and investigate the moderating role of absorptive capacity (technological acumen) on TFP spillover effects.
Design/methodology/approach
Based on data from 118 agricultural and related Chinese industries, the authors employ a multithreshold regression model to empirically analyze the impact of FDI on the TFP of agricultural enterprises and the threshold effect of absorptive capacity. To overcome potential endogeneity problems, the authors select the FDI stock of corresponding USA industries and the industrial access policy index as instrumental variables and re-estimate the model.
Findings
The results suggest foreign-invested agricultural enterprises are more likely to benefit from FDI, while the “aggregate” FDI spillover effect is negative for domestic agricultural enterprises. However, once threshold effects are introduced, the authors find firms “close to” (“far from”) the technological frontier experience statistically significant positive (negative) spillover effects. Similar results are obtained for virtually all FDI spillover channels for firms in both upstream and downstream industries. FDI spillovers, when they occur, can be a two-edged sword – benefiting some firms at the expense of others.
Originality/value
The authors introduce six FDI spillover channels to examine the impact of FDI on the productivity of foreign-invested and domestic agricultural enterprises. Moreover, the authors analyze the threshold effect of firms' absorptive capacity. These findings can help formulate foreign investment introduction policies based on the characteristics of agricultural enterprises with different ownership structures. These results are also beneficial for agricultural enterprises to better exploit FDI spillover effects and improve their productivity.
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Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key…
Abstract
Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key driver of this phenomenon has been the cross-border production, foreign investment, and trade both final and intermediate goods by multinational corporations. Research has sought to understand how foreign direct investment (FDI) affects host economies. This paper reviews the main theories and empirical evidence of two streams of literature: the mechanisms by which multinational activity might create positive effects and externalities to countries and the role of complementary local conditions, also known as “absorptive capacities,” that allow a country to reap the benefits of FDI paying particular attention to the role of factor markets, reallocation effects, and the linkages generated between foreign and domestic firms. The survey focuses mainly on work related to developing countries.
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Angeles Montoro‐Sánchez, Marta Ortiz‐de‐Urbina‐Criado and Eva M. Mora‐Valentín
The purpose of this paper is to determine the effects of knowledge spillovers on innovation and collaboration among firms located in science and technology parks (STPs). To do so…
Abstract
Purpose
The purpose of this paper is to determine the effects of knowledge spillovers on innovation and collaboration among firms located in science and technology parks (STPs). To do so, whether knowledge spillovers imply a greater degree of innovation in its various forms – product, process, organisational and commercial – and greater inter‐organisational collaboration on research and development (R&D) is analysed. Explicitly, this article examines these effects by identifying and distinguishing between firms located on and off STPs.
Design/methodology/approach
This paper adopts a quantitative approach. After reviewing the literature, the study tests the hypotheses empirically using a sample of 784 firms, and performing several logistic binomial regressions to analyse the impact of each type of knowledge spillover on each type of innovation and on the likelihood of firms establishing inter‐organisational collaborative R&D agreements.
Findings
The results show that knowledge spillovers have a positive impact on firm propensity to innovate and on the probability of firms engaging in inter‐organisational R&D collaboration. Furthermore, firm location within an STP is found to influence the intensity of the effect of spillovers on innovation and on R&D cooperation. Thus, the magnitude of the effects of spillovers differs according to the type of the spillover.
Originality/value
Given the special features of spillovers and the scarce evidence available analysing the relationship between spillovers, innovation and cooperation and the location on STPs, this work contributes significant empirical evidence to the existing literature.
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Chun‐Yao Tseng, Da Chang Pai and Chi‐Hsia Hung
The purpose of this paper is to discuss whether the three knowledge sources, knowledge input, knowledge spillover and knowledge absorptive capacity, really increase the innovation…
Abstract
Purpose
The purpose of this paper is to discuss whether the three knowledge sources, knowledge input, knowledge spillover and knowledge absorptive capacity, really increase the innovation performance of firms in the Taiwan IC design industry, one of the most important knowledge‐intensive business services (KIBS) industries in Taiwan.
Design/methodology/approach
Based on the knowledge‐based theory, this study uses pooled regression analysis and tests with fixed effect model to analyze the influence of three knowledge sources on innovation performance in the KIBS sector.
Findings
The results demonstrate that: knowledge input is positively related to innovation performance; knowledge spillover effect is partial positively to innovation performance; and knowledge absorptive capacity is positively related to innovation performance.
Originality/value
The paper advances the concept of absorptive capacity by defining it as the interactions between knowledge input and knowledge spillover and refines the measurement of absorptive capacity as the multiplication of knowledge input and knowledge spillover effects. Moreover, knowledge spillover effects and knowledge absorptive capacity are both divided into four kinds which help us distinguish clearly different sources of knowledge spillover and absorptive capacity. In addition to that, this study also contributes to the empirical evidence to innovation activities by using firm‐level micro data.
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Cristina Villar, Ramón Javier Mesa and Jose Plà Barber
This paper analyzes the available literature on export spillovers from foreign direct investment (FDI) and their effects on domestic firms’ export activities. The purpose of this…
Abstract
Purpose
This paper analyzes the available literature on export spillovers from foreign direct investment (FDI) and their effects on domestic firms’ export activities. The purpose of this paper is to advance our knowledge of whether export spillovers from FDI exist, and if so if they differ according to the institutional context of the targeted markets (developed vs emerging markets).
Design/methodology/approach
Drawing from the pioneering work of Aitken et al. (1997), the authors develop a meta-analysis using a selection of 73 studies for the period 1997–2018, including a wide range of developed and emerging markets.
Findings
The meta-analysis confirms a high probability of finding positive effects when studying the different types of spillovers. The authors also show that the type of export spillover depends on the institutional context. Spillovers drive a complementary effect which generates more direct commercial links between domestic firms and foreign multinationals for advanced economies, whereas for emerging markets the nature of the spillover generates a competition/imitation effect that pressures domestic firms to be better inserted into foreign markets. In emerging markets, local governments play a fundamental role in accompanying the local industry, not only with investments in infrastructure and training of human capital but also in the configuration of an institutional environment that favors this type of indirect linkages. In developed countries, two business strategies are particularly important as catalytic axes of competitive upgrading at the international level: cooperation agreements between domestic and foreign firms and integration. These processes of concentration are necessary to compete globally, and therefore, governments should promote this type of strategies.
Originality/value
The study offers an original classification of the different types of spillovers based on the different channels through which MNE help local firms to improve their export performance and shows which specific spillover is associated with the different level of country development. These results have important implications in terms of theory development and managerial and policy implications.
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