Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis*

Sourafel Girma · 2005 · Oxford Bulletin of Economics and Statistics

Summary. Foreign direct investment boosts productivity growth, but only when local firms have sufficient absorptive capacity. Manufacturing sectors show nonlinear effects: productivity gains increase with absorptive capacity up to a threshold, then decline. Below a minimum capacity level, FDI spillovers become negligible or harmful. Technology-sourcing FDI produces no productivity spillovers.

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@article{girma-2005-absorptive-capacity-productivity-spillovers-fdi,
  title   = {Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis*},
  author  = {Sourafel Girma},
  journal = {Oxford Bulletin of Economics and Statistics},
  year    = {2005},
  doi     = {10.1111/j.1468-0084.2005.00120.x},
  url     = {https://doi.org/10.1111/j.1468-0084.2005.00120.x}
}

TY  - JOUR
TI  - Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis*
AU  - Sourafel Girma
JO  - Oxford Bulletin of Economics and Statistics
PY  - 2005
DO  - 10.1111/j.1468-0084.2005.00120.x
UR  - https://doi.org/10.1111/j.1468-0084.2005.00120.x
ER  - 

Details

DOI

10.1111/j.1468-0084.2005.00120.x

Countries

United Kingdom

Regions

Europe

Categories

innovation-theory, regional-innovation-systems, general-innovation

Added

2026-04-28