Death of linkages in host countries? A firm-level study on the channels of productivity spillovers in the Malaysian manufacturing sector

Research output: Contribution to journalArticle

Abstract

Productivity spillovers from multinational corporations (MNCs) to local firms have been an area of keen research interest in developing economics. Claims of positive spillovers in the form of technology transfers have been questionable, in part because of the many ambiguous conclusions obtained. The paper argues that the lack of focus in the mechanisms underpinning spillovers may be one of the reasons for the ambiguity. Using local input-output linkages as the mechanism for technology transfer, this study examines the presence and the enabling conditions for spillovers. Accounting for the variations in firms' characteristics, the findings show that skills-oriented MNCs participating in international production networks transmit horizontal spillovers to local establishments. Vertical spillovers from MNCs are mostly relevant only to lower-skilled establishments. For skilled and export-oriented local establishments, technologies learned from producing for international production networks are more significant than forming linkages with MNCs in the domestic market.

Original languageEnglish
Pages (from-to)65-79
Number of pages15
JournalAsian-Pacific Economic Literature
Volume30
Issue number1
DOIs
Publication statusPublished - 1 May 2016

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multinational corporation
technology transfer
manufacturing sector
manufacturing
productivity
firm
death
market
domestic market
research interest
economics
Productivity spillovers
Spillover
Host country
Linkage
Multinational corporations
Manufacturing sector
lack
Production networks

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Economics and Econometrics

Cite this

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