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How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition

Marcin Kolasa · 2007 · Journal of International Trade & Economic Development

Summary. Foreign direct investment in Poland generates productivity gains for domestic firms through horizontal spillovers (same industry) and vertical spillovers (upstream and downstream industries). Domestic firms' ability to absorb knowledge matters significantly: R&D-intensive firms benefit most from vertical spillovers, while firms investing in intangibles gain more from horizontal spillovers. Competition strengthens backward spillovers, while market power increases forward spillovers. Effects vary by sector, with services showing strong horizontal spillovers and manufacturing driving other results.

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Kolasa, M.. (2007). How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition. Journal of International Trade & Economic Development. https://doi.org/10.1080/09638190701728131

Details

DOI
10.1080/09638190701728131
Countries
Poland
Regions
Europe
Categories
regional-innovation-systems, innovation-networks, general-innovation
Added
2026-04-28