Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment

Kee, Hiau Looi

Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment

2014

Kee, Hiau Looi

Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.

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Mots clés AGROVOC

accounting climate change common markets construction econometrics economic development economics elasticity equipment exports foreign investment globalization growth models international trade manufacturing marginal costs market competition material open access price indices product quality production functions productivity regression analysis results technology transfer telecommunications trade liberalization trade policies unemployment uses value added wages

Informations bibliographiques

Editeur

World Bank Group, Washington, DC

D'autres materias

Ownership structure; Total sales; Customs; Total revenue; Government policies; Overseas buyers; Price indexes; Aggregate demand; Market shares; Intermediate goods; Political economy; Productivity growth; Suppliers; E-mail; Price level; Capital investment; Open economy; Performance indicators; Foreign direct investment; Production function; Returns to scale; Total output; Price index; Development policy; Gdp; Substitution; Result; Total factor productivity; Export markets; Input prices; Market share; Production process; Search; Positive externalities; Supply chain; Average productivity; Supplier; Trade policy; Manufacturing industries; Pecuniary externalities; Common market; Elasticity of substitution; Externalities

Langue

anglais

Format

application/pdf, text/plain

Licence

CC BY 3.0 IGO, http://creativecommons.org/licenses/by/3.0/igo/

Sur AGRIS depuis: 2024-10-18

Date de modification: 2025-10-25

Format: Dublin Core

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Cette notice bibliographique a été fournie par World Bank

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Liens

DOI http://documents.worldbank.org/curated/en/2014/09/20251617/local-intermediate-inputs-shared-supplier-spillovers-foreign-directbrinvestment https://hdl.handle.net/10986/20366

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Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment

2014

Mots clés AGROVOC

Informations bibliographiques