Technology, Transfer and Spillovers: Does Local Participation with Multinationals Matter?Abstract: This paper examines the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates. More specifically, we try to answer two questions, using unpublished Indonesian micro data. Firstly, do establishments with minority and majority ownership differ in terms of productivity levels? Secondly, does the degree of spillover differ with the degree of ownership in the FDI? Our results show that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers. However, the degree of foreign ownership does neither affect the level of labor productivity in foreign establishments, nor the degree of spillovers. |
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5-digit industry adjustment for heteroscedasticity already face competitive benefit from spillovers Capacity utilization CEPR Chi-square test degree of foreign degree of spillovers Descriptive statistics Discussion Papers domestic establishments Variables Economics equal coefficients refer establishments Variables Regression establishments with foreign export oriented firms Financial Economics firms already face Forcing multinationals foreign affiliates foreign direct investment foreign establishments foreign ownership majority Goswell Road gross output produced host country host economy Indonesian manufacturing Industry dummies intangible assets intra-industry spillovers joint ventures labor productivity differences Labour Economics Macroeconomics majority owned foreign minority and majority multinational affiliates multinational corporation multinationals reveals oriented firms already ownership sharing participation with multinationals percent level proprietary knowledge Regression 2 Regression reveals the MNCs Scale specific dummy variables spillovers differ spillovers from FDI spillovers from foreign subscription t-statistics within brackets technologies brought test for equal TRANSFER AND SPILLOVERS Transition Economics UNIVERSITY OF VIRGINIA value added ם ם ם