The Impact Of FDI On The Productivity Of Manufacturing Enterprises In Host Countries

With the deepening of economic globalization and economic integration,international capital flows frequently,and more and more countries,especially developing countries,have formulated a series of policies to attract FDI inflows.According to the World Investment Report released by UNCTAD in 2019,global foreign direct investment in 2018 was US$1.3 trillion,down 13%year-on-year,and it fell for the third consecutive year.Specifically,the total amount of FDI flowing into developed countries decreased by 27%,which was the lowest since 2004;while the FDI flowing into developing economies showed a small increase,with an increase of 2%.The share of FDI in developing countries rose from 47%in 2017 to 54%,a record high.A large body of empirical research evidence illustrates FDI spillovers and spillovers(Gorg and Greenaway,2004;Lipsey and Sjoholm,2005;Smeets,2008;Havranek and Irsova 2011).Overall,the empirical study of the spillover effects of FDI did not reach a consistent conclusion,indicating that the theoretical spillover effect does not automatically occur because a country initially has the ability to attract FDI.As a result,more and more research is focusing on various factors that lead to contradictory outcomes.Since the FDI spillover effect is determined jointly by both the multinational company and the host country,the spillover characteristics and the absorptive characteristics can affect the FDI spillover.Specifically,foreign investment can influence FDI spillovers by strengthening or inhibiting multiple mechanisms such as demonstration,competition,and linkage effects.The absorption capacity of enterprises is an important factor influencing FDI spillovers.Only companies with certain absorptive capacity can benefit from FDI spillovers.Host country characteristics can affect FDI spillovers by affecting FDI spillover potential and domestic absorptive capacity.In view of this,this paper takes the domestic manufacturing enterprises in middle-income countries in 2012 as the research object,and studies the impact of FDI spillovers on the productivity of domestic enterprises in the manufacturing industry of the host countries based on foreign investment behavior,corporate absorptive capacity and host country characteristics.The full text is divided into six parts,the specific arrangements are as follows:The first part is an introduction.This part mainly introduces the research background and significance,research content and research methods of this paper,as well as the innovation and existing deficiencies of this paper.The second part is a literature review.From the FDI spillover mechanism,the FDI spillover channel and the factors affecting the FDI spillover,the existing literatures are reviewed,and the literature review is carried out to summarize the shortcomings of the existing literature.The third part is the theoretical analysis of the impact of FDI spillovers on the manufacturing productivity of the host country.This paper expounds the related theories of FDI spillovers from three aspects:resource-based view,subsidiary-specific advantage theory and enterprise heterogeneity theory,and analyzes the influence of foreign-funded behavior,corporate' absorptive capacity and host country characteristics on FDI spillovers,and lays the theoretical foundation of this paper.basis.The fourth part is the characteristic fact that FDI spillovers promote the productivity improvement of the manufacturing industry in the host country.Firstly,the situation of investment in middle-income countries was described and analyzed from the aspects of investment scale,industry distribution and structural characteristics.Then,the status quo of technological progress and productivity development of foreign-funded enterprises in middle-income countries was compared and analyzed.Finally,the characteristics of middle-income countries were summarized.The fifth part is an empirical analysis.Based on the 7208 manufacturing domestic enterprises in 47 middle-income countries provided by the World Bank Enterprise Survey Database in 2012,the IV-2SLS estimation method was used to test the impact of foreign investment behavior,corporate absorptive capacity and host country characteristics on FDI spillover effects.According to the sample of foreign ownership structure and enterprise productivity level,the paper analyzes the similarities and differences of the above three factors on FDI spillover under different samples.The sixth part is conclusions and policy recommendations.Summarize the conclusions of the paper and propose policy recommendations on how to maximize the positive spillover effect of FDI in middle-income countries.Compared with previous studies,this paper mainly innovates in four aspects:research object,adjustment factor selection,research content and endogenous treatment.First,using the enterprise-level data of 2013 middle-income countries provided by the World Bank's enterprise survey database to study the FDI spillover effects of middle-income countries,the conclusions obtained are more general.Second,the introduction of foreign capital behavior,absorptive capacity and host country characteristics are measured by four or more variables for each type of factor,supplementing the existing literature on factors affecting FDI spillovers and enhancing the accuracy of research results.Sex.Third,on the basis of the overall return,foreign investment is divided into sole proprietorships and joint ventures according to the foreign ownership structure,and the similarities and differences between foreign investment behavior,corporate absorptive capacity and host country characteristics on the spillover effects of sole proprietorships and joint ventures are examined.In addition,according to the productivity of domestic enterprises,domestic enterprises are divided into low-productivity enterprises and high-productivity enterprises.The three factors affect the spillover effect of FDI on low-productivity and high-productivity enterprises,and enrich the research content.Fourth,the industry average customs clearance days and the number of foreign-funded enterprises in the industry are selected as the instrumental variables of FDI spillovers.The IV-2SLS estimation method is used to solve the potential endogeneity between FDI spillovers and domestic enterprise productivity.This is also the biggest innovation in this paper.