Productivity spillovers from FDI in Malaysian manufacturing

Evidence from micro-panel data

Noor Aini Khalifah, Radziah Adam

Research output: Contribution to journalArticle

20 Citations (Scopus)

Abstract

Using an establishment-level panel dataset for the Malaysian manufacturing industries for 2000-2004, we argue that differences in the proxies and degrees of foreign shareholdings in measuring foreign presence lead to opposite signs and/or significance of spillover effects. The results show significant evidence of positive productivity spillovers to local establishments in the same industry, based on a broad measure of foreign presence. However, there is no evidence of positive spillover when employment share is used as a proxy for foreign presence. Furthermore, significant negative spillover effects are related to higher employment shares of wholly foreign-owned establishments. Although there is no significant difference in labor productivity between wholly foreign-owned and locally-owned establishments, both majority and minority foreign-owned establishments have significantly lower levels of labor productivity than locally-owned establishments in Malaysia.

Original languageEnglish
Pages (from-to)143-167
Number of pages25
JournalAsian Economic Journal
Volume23
Issue number2
DOIs
Publication statusPublished - 2009

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spillover effect
labor productivity
panel data
manufacturing
productivity
industry
manufacturing industry
evidence
Malaysia
minority
measuring

Keywords

  • FDI
  • Productivity spillovers
  • Technology transfer

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Productivity spillovers from FDI in Malaysian manufacturing : Evidence from micro-panel data. / Khalifah, Noor Aini; Adam, Radziah.

In: Asian Economic Journal, Vol. 23, No. 2, 2009, p. 143-167.

Research output: Contribution to journalArticle

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