Kee, Hiau Looi
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment Kee, Hiau Looi [electronic resource] / Kee, Hiau Looi - Washington, D.C., The World Bank, 2014 - 1 online resource (62 p.) - Policy research working papers. World Bank e-Library. .
Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.
10.1596/1813-9450-7050
E-Business
Economic Theory & Research
Foreign Direct Investment
Intermediate Inputs
Labor Policies
Local Suppliers
Macroeconomics and Economic Growth
Markets & Market Access
Multi-Product Firms
Private Sector Development
Product Scope
Productivity
Shared Supplier Spillovers
Social Protections and Labor
Water & Industry
Water Resources
Local Intermediate Inputs and the Shared Supplier Spillovers of Foreign Direct Investment Kee, Hiau Looi [electronic resource] / Kee, Hiau Looi - Washington, D.C., The World Bank, 2014 - 1 online resource (62 p.) - Policy research working papers. World Bank e-Library. .
Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.
10.1596/1813-9450-7050
E-Business
Economic Theory & Research
Foreign Direct Investment
Intermediate Inputs
Labor Policies
Local Suppliers
Macroeconomics and Economic Growth
Markets & Market Access
Multi-Product Firms
Private Sector Development
Product Scope
Productivity
Shared Supplier Spillovers
Social Protections and Labor
Water & Industry
Water Resources