Production
https://prod.org.br/article/doi/10.1590/0103-6513.20180050
Production
Thematic Section

Analysis of absorptive capacity and foreign direct investment in the productivity of Brazilian municipalities

Diogo Ferraz; Naijela Janaina da Costa; Bruno Fernandes; Eduardo Polloni Silva; Pedro Henrique Mendonça Marques; Herick Fernando Moralles; Daisy Rebelatto

Downloads: 0
Views: 416

Abstract

Abstract: Paper aims: to measure the impact of Foreign Direct Investment (FDI) and Absorptive Capacity (AC) on productivity in Brazil.

Originality: no articles were found using the AC as moderator of FDI in Brazil.

Research method: the Malmquist Index was employed and the Feasible Generalized Least Squares (FGLS) model was chosen, which has greater robustness for correcting the heterocedasticity and autocorrelation.

Main findings: productivity is more impacted by FDI than Economic Complexity. There is a two-year time lag to the impact of the FDI on productivity. The interaction between FDI and AC becomes positive only when experience and schooling are controlled. The number of PhD employees was better as proxy for AC than R&D workers.

Implications for theory and practice: there was no positive relationship between productivity and the number of higher education professionals.

Keywords

Malmquist index, Economic complexity, Higher education, Panel Data

References

Abor, J., Adjasi, C. K. D., & Hayford, M. C. (2008). How does foreign direct investment affect the export decisions of firms in Ghana? African Development Review , 20(03), 446-465. http://dx.doi.org/10.1111/j.1467-8268.2008.00193.x.

Aigner, D. J., & Chu, S. F. (1968). Estimating the Industry Production Function. The American Economic Review, 58, 826-839.

Akaike, H. (1973). Information theory and an extension of the maximum likelihood principle. In B. N. Petrov & F. Csaki (Ed.), Second International Symposium on Information Theory (pp. 267-281). Budapest: Akailseoniai–Kiudo.

Akaike, H. (1974). A new look at the statistical model identification. IEEE Transactions on Automatic Control, 19(6), 716-723. http://dx.doi.org/10.1109/TAC.1974.1100705.

Akinlo, A. E., & Adejumo, O. O. (2016). Determinants of total factor productivity growth in Nigeria, 1970–2009. Global Business Review, 17(2), 257-270. http://dx.doi.org/10.1177/0972150915619801.

Amal, M., & Seabra, F. (2007). Determinantes do Investimento Direto Externo (IDE) na América Latina: uma perspectiva institucional. Revista Economia , 08(2), 231-247.

Anyanwu, J. C. (2006). Promoting of investment in Africa. African Development Review , 18(01), 42-71. http://dx.doi.org/10.1111/j.1467-8268.2006.00132.x.

Anyanwu, J. C. (2017). Foreign direct investment. In K. A. Reinert (Ed.), Handbook of globalisation and development (Vol. 8, 131-152). Northampton: Edward Elgar Publishing. http://dx.doi.org/10.4337/9781783478651.00015.

Arazmuradov, A., Martini, G., & Scotti, D. (2014). Determinants of total factor productivity in former Soviet Union economies: A stochastic frontier approach. Economic Systems , 38(1), 115-135. http://dx.doi.org/10.1016/j.ecosys.2013.07.007.

Baldwin, R., Braconier, H., & Forslid, R. (2005). Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence. Review of International Economics , 13(5), 945-963. http://dx.doi.org/10.1111/j.1467-9396.2005.00546.x.

Basi, R. S. (1963) Determinants of United States private direct investments in foreign countries. Kent State University Press, Kent, Ohio.

Bozdogan, H. (1987). Model selection and Akaike’s Information Criterion (AIC): The general theory and its analytical extensions. Psychometrika, 52(3), 345-370. http://dx.doi.org/10.1007/BF02294361.

Cao, L., Qi, Z., & Ren, J. (2017). China’s industrial total-factor energy productivity growth at sub-industry level: A two-step stochastic metafrontier Malmquist index approach. Sustainability, 9(1384), 1-22. http://dx.doi.org/10.3390/su9081384.

Castiglionesi, F., & Ornaghi, C. (2013). On the determinants of total factor productivity growth: Evidence from Spanish manufacturing firms. Macroeconomic Dynamics , 17(3), 501-530. http://dx.doi.org/10.1017/S1365100511000332.

Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982). The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity. Econometrica , 50(06), 1393-1414. http://dx.doi.org/10.2307/1913388.

Chen, L. H., Tang, L., & Ni, W. J. (2016). Analysis of total factor productivity between 2003 and 2014 in tertiary hospitals in Shanghai based on Malmquist index. Journal of Shanghai Jiaotong University, 36(6), 912-916. [Medical Science]

Coelli, T. J., Rao, D. S. P., & Battese, G. E. (1998). An introduction to efficiency and productivity analysis. Boston: Kluwer Academic, 275. http://dx.doi.org/10.1007/978-1-4615-5493-6.

Cohen, W. M., & Levinthal, D. A. (1989). Innovation and Learning: The Two Faces of R & D. Economic Journal, 99(397), 569-596. http://dx.doi.org/10.2307/2233763.

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive Capacity : A New Perspective on and Innovation Learning. Administrattive Science Quarterly , 35(1), 128-152.

Danska-Borsiak, B. (2018). Determinants of total factor productivity in Visegrad Group nuts-2 regions. Acta Oeconomica, 68(01), 31-50. http://dx.doi.org/10.1556/032.2018.68.1.2.

Danska-Borsiak, B., & Laskowska, I. (2012). The Determinants of Total Factor Productivity in Polish Subregions. Panel Data Analysis. Comparative Economic Research , 15(04), 17-29. http://dx.doi.org/10.2478/v10103-012-0023-9.

Dupasquier, C., & Osakwe, P. N. (2003). Performance, promotion, and prospects for foreign investment in Africa: national, regional, and international responsibilities . Paper prepared for the ‘Eminent Persons’ Meeting on ‘Promotion of Investment in Africa, Tokyo.

Economou, F., Hassapis, C., Philippas, N., & Tsionas, M. (2017). Foreign Direct Investment Determinants in OECD and Developing Countries. Review of Development Economics , 21(03), 527-542. http://dx.doi.org/10.1111/rode.12269.

Färe, R., Grosskopf, S., & Lovell, C. A. K. (2004). Production Frontiers (1st ed.). New York: Cambridge University Press.

Färe, R. S., Grosskopf, M. N., & Zhang, Z. (1994). Productivity Growth, Technical Progress and Efficiency Changes in Industrialized Countries. The American Economic Review, 84, 66-83.

Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society, 120(3), 253-290.

Felema, J., Raiher, A. P., & Ferreira, C. R. (2013). Agropecuária brasileira: desempenho regional e determinantes de produtividade. Revista de Economia e Sociologia Rural, 51(3), 555-574. http://dx.doi.org/10.1590/S0103-20032013000300008.

Ferreira, C. M. C., & Gomes, A. P. (2009). Introdução à análise envoltória de dados: teoria, modelos e aplicações . Viçosa: Editora UFV.

Freund, R. J., Wilson, W. J., & Sa, P. (2006). Regression analysis – Statistical Modeling of a response variable. San Diego: Elsevier, Inc., 459.

Fu, Q., & Ji, F. (2017). Total factor productivity of food manufacturing industry in China: A DEA-Malmquist index measurement. Revista de la Facultad de Ingeniería , 32(4), 1-8.

Giovanis, E., & Ozdamar, O. (2015). Determinants of total factor productivity: Evidence from US Compustat firms and Triadic Patent Families. International Journal of Economics and Business Research, 10(03), 258-272. http://dx.doi.org/10.1504/IJEBR.2015.071845.

Girma, S. (2005). Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis. Oxford Bulletin of Economics and Statistics, 67(03), 281-306. http://dx.doi.org/10.1111/j.1468-0084.2005.00120.x.

Gonzales, R. V. D., & Martins, M. F. (2015). Knowledge Management: an analysis based on organization contextual factors. Production, 25(04), 834-850.

Grant, R. M. (1996). Prospering in dynamically competitive environments: organizational capability as knowledge integrations. Organization Science, 07(04), 375-387. http://dx.doi.org/10.1287/orsc.7.4.375.

Greene, W. H. (2011). Econometric analysis. New York: Prentice Hall.

Griliches, Z. (1998). R&D and Productivity: The Econometric Evidence. The American Economic Review, 84(01), 9-21.

Gujarati, D. N., & Porter, D. C. (2011). Econometria básica . (5. ed.). Porto Alegre: AMCG.

Harris, R., & Moffat, J. (2015). Plant-level determinants of total factor productivity in Great Britain, 1997–2008. Journal of Productivity Analysis , 44(01), 1-20. http://dx.doi.org/10.1007/s11123-015-0442-2.

Hartmann, D. (2014). Economic complexity and human development: how economic diversification and social networks affect human agency and welfare. New York: Routledge.

Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences of the United States of America , 106(26), 10570-10575. http://dx.doi.org/10.1073/pnas.0900943106. PMid:19549871.

Holland, M., & Xavier, C. L. (2005). Dinâmica e competitividade setorial das exportações brasileiras: uma análise de painel para o período recente. Economia e Sociedade (Campinas), 14(1), 85-108.

Howells, J. (2005). Innovation and regional economic development: A matter of perspective? Research Policy, 34(08), 1220-1234. http://dx.doi.org/10.1016/j.respol.2005.03.014.

Instituto Brasileiro de Geografia e e Estatística. Banco de Tabelas Estatísticas – SIDRA. (2018). Sistema IBGE de Recuperação Automática . Brasília: IBGE. Retrieved in 2018 March 06, from http://https://sidra.ibge.gov.br/home/pms/brasil

International Monetary Fund. (1998). Report on the survey of implementation of methodological standards for direct investment. DAFFE, Statistic Department, 99(14).

Inekwe, J. N. (2013). FDI, employment and economic growth in Nigeria. African Development Review, 25(04), 421-433. http://dx.doi.org/10.1111/1467-8268.12039.

Javorcik, B. S. (2004). Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. The American Economic Review, 94(3), 605-627. http://dx.doi.org/10.1257/0002828041464605.

Judge, G. G., Griffiths, W. E., Hill, R. C., Lutkepohl, H., & Lee, T.-C. (1985). The theory and practice of econometrics. 2nd ed. New York: Wiley.

Kim, M. (2015). Productivity spillovers from FDI and the role of domestic firm’s absorptive capacity in South Korean manufacturing industries. Empirical Economics , 50(04), 807-827. http://dx.doi.org/10.1007/s00181-014-0804-z.

Kim, S. (2011). Factor determinants of total factor productivity growth in the malaysian hotel industry: A stochastic frontier approach. Cornell Hospitality Quarterly , 52(01), 35-47. http://dx.doi.org/10.1177/1938965509341286.

Kim, S. (2016). Factor determinants of total factor productivity growth for the japanese manufacturing industry. Contemporary Economic Policy, 34(03), 572-586. http://dx.doi.org/10.1111/coep.12152.

Krugman, P. R., & Obstfeld, M. (2010). Economia internacional: teoria e política (5. ed.). São Paulo: Makron Books.

Kumari, R., & Sharma, A. K. (2017). Determinants of foreign direct investment in developing countries: a panel data study. International Journal of Emerging Markets , 12(04), 658-682. http://dx.doi.org/10.1108/IJoEM-10-2014-0169.

Lapan, H., & Bardhan, P. (1973). Localized technical progress and transfer of technology and economic development. Journal of Economic Theory, 6(6), 585-595. http://dx.doi.org/10.1016/0022-0531(73)90079-3.

Lewison, G. (1991). The scientific output of the EC’s less favoured regions. Scientometrics, 21(03), 383-402. http://dx.doi.org/10.1007/BF02093977.

Li, X., & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly endogenous relationship. World Development, 33(03), 393-408. http://dx.doi.org/10.1016/j.worlddev.2004.11.001.

Li-Ming, X., Rui, J., & Rui, J. (2016). Productivity Spillovers from FDI, absorptive capacity and self-innovation capabilities of resource area: Evidence from 1992–2013 in Shanxi, China. Science, Technology & Society, 21(02), 149-180. http://dx.doi.org/10.1177/0971721816640616.

Liu, Z. (2008). Foreign direct investment and technology spillovers: Theory and evidence. Journal of Development Economics, 85(1-2), 176-193. http://dx.doi.org/10.1016/j.jdeveco.2006.07.001.

Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 03-42.

Malmquist, S. (1953). Index numbers and indifference surfaces. Trabajos de Estatistica , 4(2), 209-242. http://dx.doi.org/10.1007/BF03006863.

Messa, A. (2013). Indicadores de produtividade: uma breve revisão dos principais métodos de cálculo. Radar: Tecnologia, Produção e Comércio Exterior, 28, 17-26.

Miguelez, E., & Moreno, E. (2015). Knowledge flows and the absorptive capacity of regions. Research Policy, 44(04), 833-848. http://dx.doi.org/10.1016/j.respol.2015.01.016.

Mu, M., Tian, Y., & Duan, J. (2017). Impact of overseas listing on total factor productivity: A DEA-malmquist index measurement. Boletin Tecnico/Technical Bulletin , 55(4), 525-530.

Organisation for Economic Co-operation and Development (1987). International Investment and Multinational Enterprises. Recent Trends in International Direct Investment . Paris: OECD. Retrieved in 2018 March 05 [[Q1: Q1]], from http://www.oecd.org/corporate/mne/statistics.htm.

Otsuka, A. (2017). Regional determinants of total factor productivity in Japan: stochastic frontier analysis. The Annals of Regional Science, 58(03), 579-596. http://dx.doi.org/10.1007/s00168-017-0808-7.

Otsuka, K., & Natsuda, K. (2016). The determinants of total factor productivity in the malaysian automotive industry: are government policies upgrading technological capacity? The Singapore Economic Review, 61(04), 1550046. http://dx.doi.org/10.1142/S0217590815500460.

Pessoa, A. (2008). Multinational corporations, foreign investment, and royalties and license fees: effects on Host-Country Total Factor Productivity. Notas Económicas , 28, 6-31.

Porcile, G., Vaz Sampaio, A., & Curado, M. (2005). Produtividade total dos fatores: aspectos teóricos e evidências brasileiras. Economia e Tecnologia , 3, 91-100.

Santos, J., Triches, D., & Godoy, M. R. (2015). O desempenho do fluxo de investimento direto externo internacional e nos BRICs. Política Externa, 24(01-02), 1-14.

Sari, D. W., Khalifah, N. A., & Suyanto, S. (2016). The spillover effects of foreign direct investment on the firms’ productivity performances. Journal of Productivity Analysis, 46(02-03), 199-233.

Schwarz, G. (1978). Estimating the dimension of a model. Annals of Statistics , 6(2), 461-464. http://dx.doi.org/10.1214/aos/1176344136.

Sheng, Y., & Song, L. (2012). China's iron and steel industry performance: Total factor productivity and its determinants. The Chinese Steel Industry's Transformation: Structural Change, Performance and Demand on Resources, 69-88.

Takii, S. (2005). Productivity spillovers and characteristic of foreign multinational plants in Indonesian manufactuiring. Journal of Development Economics , 76(02), 521-542. http://dx.doi.org/10.1016/j.jdeveco.2004.01.006.

Todorova, G., & Durisin, B. (2007). Note absorptive capacity. Valuing A , 32(03), 774-786.

Ubeda, F., & Pérez, H. F. (2017). Absorptive capacity and geographical distance two mediating factors of FDI spillovers: a threshold regression analysis for spanish firms. Journal of Industry, Competition and Trade, 17(01), 1-28. http://dx.doi.org/10.1007/s10842-016-0226-z.

Zahra, S. A., & George, G. (2002). Absorptive capacity : A review, reconceptualization, and extension. Academy of Management Review, 27(02), 185-203. http://dx.doi.org/10.5465/amr.2002.6587995.
 

5bf7e1460e88253f70563e52 production Articles
Links & Downloads

Production

Share this page
Page Sections