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Origin of FDI and intra-industry domestic spillovers: the case of Greek and European FDI in Bulgaria

Monastiriotis, Vassilis and Alegria, Rodrigo (2011) Origin of FDI and intra-industry domestic spillovers: the case of Greek and European FDI in Bulgaria. Review of Development Economics, 15 (2). pp. 326-339. ISSN 1363-6669

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This paper uses firm-level data to assess the horizontal impact of foreign firm ownership on domestic productivity in Bulgaria. We identify a theoretical tradeoff between technological distance (of domestic versus foreign firms) and internalization capacity (of spillovers) and examine the extent to which this is reflected in the impact on the domestic economy of different types and origins of FDI. Emphasis is placed upon the effects of Greek FDI, which is known to be of a distinctively “regional” character. We find that Greek FDI produces significantly larger positive spillovers, which appear more suitable for the Bulgarian context of transition and economic restructuring. We also unveil some notable “hysteresis” and “technology bias” effects for FDI spillovers of all origins, as well as some country-specific ownership-structure and threshold effects.

Item Type: Article
Official URL:
Additional Information: © 2011 Blackwell Publishing Ltd
Library of Congress subject classification: H Social Sciences > HF Commerce
Journal of Economic Literature Classification System: F - International Economics > F2 - International Factor Movements and International Business > F20 - General
M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M21 - Business Economics
Sets: Departments > European Institute
Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Research centres and groups > Hellenic Observatory
Date Deposited: 16 May 2011 15:35

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