Foreign Direct Investment in Services and Manufacturing Productivity Growth : Evidence for Chile

Fernandes, Ana M. ; Paunov, Caroline

World Bank, Washington, DC

关键词: ACCOUNTING;    ACCOUNTING SERVICES;    ADVERTISING;    AFFILIATES;    BANKING INDUSTRY;   

DOI  :  10.1596/1813-9450-4730
RP-ID  :  WPS4730

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

During the 1990s, foreign directinvestment in producer service sectors in Latin America wasmassive. Such investment may increase the quality ofservices, reduce their cost, and offer opportunities forknowledge spillovers to downstream users of the services.This paper examines the effects of foreign direct investmentin services on manufacturing productivity growth in Chilebetween 1992 and 2004. The authors estimate an extendedproduction function where plant output growth depends oninput growth and a weighted measure of foreign directinvestment in services. The novelty of the approach is thatthe authors are able to assess the intensity of usage ofvarious types of services at the plant level and use thatinformation in the estimation of the importance of foreigndirect investment in those services. The econometric resultsshow a positive and significant effect of foreign directinvestment in services on productivity growth of Chileanmanufacturing plants which is robust to a multitude oftests. The economic impact of the estimates is that forwardlinkages from foreign direct investment in services accountfor almost 5 percent of the observed increase in Chileanmanufacturing productivity growth during the sample period.This evidence therefore suggests that reducing the barriersrestricting foreign direct investment in services in manydeveloping economies may help accelerate productivity growthin their manufacturing sectors.