Are There Labour Productivity Spillovers from Foreign Direct Investment? Evidence from the Polish Manufacturing Sector, 1993–2007
Are There Labour Productivity Spillovers from Foreign Direct Investment? Evidence from the Polish Manufacturing Sector, 1993–2007

Summary/Abstract: Using panel data, this paper examines the impact of firms with foreign capital on the labour productivity of domestic firms in Poland. The econometric analysis is based on unpublished firm level data compiled by the Polish Central Statistical Office for 1993–2007. In order to examine productivity spillovers from foreign direct investment in Polish manufacturing the author makes use of the contagion and technology gap hypotheses. The former assumes that productivity spillovers from foreign firms to local ones increase in proportion to the growing share of foreign-owned firms in total production. The second hypothesis presumes that the greater are the technological gaps between foreign and local firms, the more intensive is the technology spillover. Estimated results indicate however that there were no productivity spillovers from foreign firms to local ones in manufacturing as a whole between 1993– 2007. The greater technology gap actually led to less intensive spillovers for different groups of industries according to various classifications, however the results differ between groups of industries.

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