The characteristics of domestic firms: materializing productivity spillovers from FDI

Date

2017

Authors

Özer, S. K.
Böke, S. S.

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Source Title

Emerging Markets Finance and Trade

Print ISSN

1540-496X
1558-0938 (Online)

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Publisher

Routledge

Volume

53

Issue

11

Pages

2562 - 2584

Language

English

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Abstract

Using detailed firm-level data from Turkey, for 1991–2001, we analyze the importance of domestic firm capabilities in allowing for productivity spillovers from foreign direct investment. The absorptive capacities we investigate are technology gap, export status, and human capital of domestic firms. The study contributes to the literature by offering an alternative measure of human capital that would be more relevant in a country where there are labor market imperfections. The results provide supporting evidence for the role played by the human capital of domestic firms, i.e., the ratio of skilled, in realizing mainly horizontal spillovers. Copyright © Taylor & Francis Group, LLC.

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