1 / 12

Impact of Local Inputs and Foreign Direct Investment on Domestic Firms' Performance

This study examines the influence of shared local input suppliers, imported intermediate goods, and FDI on the performance of domestic firms using data from Bangladeshi garment manufacturers. Positive effects on firm performance were observed, especially when FDI was supported by domestic intermediate goods producers. The rigorous econometrics and diverse specifications provide valuable insights for firms not exporting to the EU. Suggestions for further research and implications for firms not involved in exports are discussed.

zelenia-melton
Download Presentation

Impact of Local Inputs and Foreign Direct Investment on Domestic Firms' Performance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Local Intermediate Inputs, Foreign Direct Investment and the Performance of Domestic Firms: When Firms Share common Local Input Suppliersby H.L. Kee Comments by Michael Moore (GWU and IIEP)

  2. Foreign markets TFP Sales per worker Output per worker Domestic Producers

  3. Foreign markets TFP Sales per worker Output per worker Domestic Producers Imported intermediate goods

  4. Foreign markets TFP Sales per worker Output per worker Domestic Producers FDI Imported intermediate goods

  5. Foreign markets TFP Sales per worker Output per worker Domestic Producersi FDIi “siblings” in sector i Imported intermediate goods Domestic intermediate good producers

  6. “Everything But Arms” EU final market Non-EU final market Domestic Producers FDI “siblings” in sector i Domestic intermediate good producers of ai

  7. Data and Results • Universe of Bangladeshi garment manufacturers (1999-2003) • Positive effects on domestic firm performance (for many measures) with FDI presence served by domestic intermediate good producers

  8. Strengths of paper • Rich and detailed data set • Very careful and appropriate econometrics • Wide range of different specification with consistent results for various measures of firm performance • True for domestic firms that do not export to EU

  9. Suggestions FDIi ai Domestici Current

  10. Suggestions For i k FDIi ai ak Domestick

  11. Suggestions FDIi ai Domestici not involved in exports

  12. Unfair “complaint” • Careful empirics  Narrow lesson • FDI in other countries? • FDI in other Bangladeshi industries?

More Related