Southern MNCs in Europe and regional productivity spillovers in services/construction industry : evidence from Switzerland

Ben Hamida, Lamia (Haute école de gestion Arc, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale)

As more developing and transition market firms (southern MNCs) are engaged in outward FDI in European advanced economies, a fundamentally important question has to be addressed: whether this investment leads to positive pr oductivity effects for host economies. Our paper addresses this issue by examining whether there are signs of regional spillovers from the entry and the presence of southern MNCs in the service/construction industry. We highlight that regional spillovers from southern MNCs are c o - determined by local and foreign character istics, namely, FDI motivation and technological capac ity of the local host country firms . Possible interaction effects between local technological capacity and FDI motivation would also influence the size and the extent of regional spillovers from southern MNCs. Using firms - level data from Switzerland, we found that knowledge - exploiting FDI (KE FDI) and knowledge - seeking FDI (KS FDI) have different amounts of spillovers. In addition, h uman capital development in l ocal firms appears to be essential in gain ing large regional spillovers. It allows for positive regional spillovers for high technology firms when southern MNCs are assigned KE mandate and for low technology firms when southern MNCs invest in KS FDI.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
HEG Arc
Institute:
Institut du Management et des Systèmes d'Information
Subject(s):
Economie/gestion
Publisher:
Berkshire, United Kingdom, 13-14 June 2015
Date:
Berkshire, United Kingdom
13-14 June 2015
2015
Pagination:
26 p.
Published in:
Proceedings of Reading-UNCTAD International Business Conference 2015
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2015-10-16, last modified 2019-06-11

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