Domestic plant productivity and incremental spillovers from foreign direct investment

@article{Altomonte2009DomesticPP,
  title={Domestic plant productivity and incremental spillovers from foreign direct investment},
  author={Carlo Altomonte and Enrico Pennings},
  journal={Journal of International Business Studies},
  year={2009},
  volume={40},
  pages={1131-1148}
}
We develop a simple test to assess whether horizontal spillover effects from multinational to domestic firms are endogenous to the market structure generated by the incremental entry of the same multinationals. In particular, we analyze the performance of a panel of 10,650 firms operating in Romania in the period 1995–2001. Controlling for the simultaneity bias in productivity estimates through semi-parametric techniques, we find that changes in domestic firms' total factor productivity are… CONTINUE READING
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