Business, Management and Accounting
8 years ago

Foreign investment boosts local firms' productivity and sales in Estonia

Journal of Comparative Economics
Spillovers of technology transfer from FDI: the case of Estonia
Evis Sinani, Klaus E. Meyer

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Foreign Direct Investment (FDI) can bring new technology to local companies in Estonia. The study looked at how this technology transfer affects the productivity of domestic firms. By analyzing data from 1994 to 1999, the researchers found that the impact of technology spillovers from FDI on the growth of sales in Estonia depends on the type of FDI and the characteristics of the local company. Factors like the size of the local firm, its ownership structure, and its trade orientation influence how much technology transfer benefits the company.