How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition
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.
Cite this article
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
Kolasa, Marcin. “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, 2007. https://doi.org/10.1080/09638190701728131.
Kolasa, Marcin. 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.
@article{kolasa-2007-how-does-fdi-inflow-affect,
title = {How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition},
author = {Marcin Kolasa},
journal = {Journal of International Trade & Economic Development},
year = {2007},
doi = {10.1080/09638190701728131},
url = {https://doi.org/10.1080/09638190701728131}
}
TY - JOUR TI - How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition AU - Marcin Kolasa JO - Journal of International Trade & Economic Development PY - 2007 DO - 10.1080/09638190701728131 UR - https://doi.org/10.1080/09638190701728131 ER -
Details
- DOI
- 10.1080/09638190701728131
- Countries
- Poland
- Regions
- Europe
- Categories
- regional-innovation-systems, innovation-networks, general-innovation
- Added
- 2026-04-28