2017年-世界发展银行全球_FDI_Spillovers_and_High-Growth_Firms_in_Developing_Countries_32页_932kb

FDI Spillovers and High-Growth Firms in Developing Countries

Core Content

This working paper by Jose-Daniel Reyes examines the heterogeneous impact of foreign direct investment (FDI) spillovers on domestic enterprises, particularly high-growth firms (HGFs), in developing countries. The study focuses on two main transmission channels of knowledge spillovers: contractual linkages and demonstration effects. It also explores how the motivations of multinational corporations (MNCs) to invest affect the magnitude and nature of these spillovers.

Main Points

• FDI Spillovers are the transfer of knowledge and technology from MNCs to local firms, which can enhance productivity and economic growth.
• Two types of spillover channels are analyzed:
  • Linkages Channel: Formal relationships between MNCs and local suppliers, where MNCs source inputs domestically.
  • Demonstration Channel: Informal imitation of foreign technologies or practices by domestic firms through observation or hiring trained workers.
• High-Growth Firms (HGFs) are defined as firms with the highest employment growth rates over a two-year period. These firms are assumed to have high absorptive capacities, enabling them to internalize knowledge spillovers effectively.
• The study uses data from 71,000 firms across 50 sectors in 122 developing countries from the World Bank Enterprise Surveys (WBES).

Key Findings

• Linkages Channel is the most powerful transmission mechanism for FDI spillovers, especially for HGFs.
• A one percentage point increase in the share of inputs sourced domestically by MNCs is associated with a 0.515 unit increase in the sales growth of HGFs.
• A one percentage point increase in the share of MNCs' output in total sectoral output is correlated with a 0.12 unit increase in sales growth of HGFs.
• Demonstration effects are relatively weaker and only significant in the services sector.
• Efficiency-seeking FDI (linked to global value chains) generates larger spillovers than market-seeking FDI, likely due to lower competitive pressures.
• Natural resource-seeking FDI does not generate spillovers to HGFs.
• HGFs are typically small and young, with most having fewer than 20 employees.
• HGFs are more prevalent in the services sector than in manufacturing, and they exhibit higher employment and output growth compared to other firms.
• Spillover channels vary by sector and region. Linkages are more common in manufacturing, while demonstration effects are more balanced across sectors.

Policy Implications

• Linkages programs are critical for connecting high-potential local suppliers with MNCs to maximize the benefits of FDI.
• Manufacturing sectors with MNCs embedded in global value chains are more likely to generate knowledge spillovers.
• Market failures such as information asymmetry, low scale, and quality constraints may hinder the automatic creation of domestic linkages.
• Policy design should prioritize supporting HGFs and improving their absorptive capacities to capture the positive effects of FDI spillovers.

Methodology and Data

• The study uses firm-level data from the WBES to measure the presence and impact of FDI spillovers.
• HGFs are identified as firms in the top 5th percentile of employment growth rates.
• Linkages are measured by the average share of inputs sourced domestically by foreign firms.
• Demonstration effects are measured by the share of MNC output in total sectoral output.
• The paper accounts for sectoral and regional variations, using 2-digit ISIC codes for classification.

Conclusion

The paper highlights the asymmetric impact of FDI spillovers, showing that while most domestic firms do not benefit, HGFs are the main beneficiaries. It emphasizes the importance of contractual linkages and efficiency-seeking FDI in driving positive spillovers, and provides insights into the role of firm size, age, and sector in capturing these benefits. The findings are relevant for policy design in developing countries aiming to enhance the economic and social returns from FDI.