FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries

Noor Aini Khalifah, Salmah Mohd Salleh, Radziah Adam
  • Asian-Pacific Economic Literature, May 2015, Wiley
  • DOI: 10.1111/apel.12094

FDI productivity spillovers and technology gap

What is it about?

Whether technology gap (distance of establishment from frontier establishments in the industry) and foreign presence (within as well as across industries) individually as well as interactively influence TFP of establishments controlling for the effects of size and labour quality of establishments as well as market power in an industry.

Why is it important?

one of the justifications for providing fiscal incentives to inward FDI in developing countries is productivity spillovers (or indirect technology transfer) from FDI and assessing the impact of spillovers contributes to evidence based policy formulation.


Dr Noor Aini Khalifah
Universiti Kebangsaan Malaysia

There are many proxies used to assess an economic phenomena and different proxies may yield different results. Depending on the underlying assumptions used to arrive at the proxies, policy conclusions are not " clear-cut"--choosing between "black" and "white" is easy but choosing from a spectrum that ranges from the two extremes with many shades of grey in between is a daunting task.

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The following have contributed to this page: Dr Noor Aini Khalifah