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Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector

    Filippo Reganati Affiliation
    ; Edgardo Sica Affiliation

Abstract

Foreign direct investment (FDI) from Multinational Enterprises (MNEs) can be beneficial to host countries, since it may generate positive externalities to domestic firms, contributing to the increase of their productivity. These positive effects can take place both within an industry ("horizontal” spillovers) and across industries ("vertical” spillovers) as in the case of technology transfers to domestic suppliers or customers in the production chain. Using a firm‐level panel data, in this paper we analyse productivity spillovers from FDI in the Italian manufacturing firms both within and across industries. Our results suggest the existence of “vertical” spillovers and no evidence of “horizontal” ones.


First Published Online: 14 Oct 2010

Keyword : FDI, MNEs, Productivity Spillovers, Backward Linkages, Forward Linkages, Italian Manufacturing Sector

How to Cite
Reganati, F., & Sica, E. (2007). Horizontaland vertical spillovers from FDI: Evidence from panel data for the Italian manufacturing sector. Journal of Business Economics and Management, 8(4), 259-266. https://doi.org/10.3846/16111699.2007.9636178
Published in Issue
Dec 31, 2007
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