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Savuth Cheng
''Foreign direct investment and productivity spillovers: Empirical evidence from Cambodia''
( 2012, Vol. 32 No.3 )
This paper investigates productivity spillovers from Foreign Direct Investment (FDI) to the host country. By using firm-level data from Cambodia and by regressing domestic firms' total factor productivity (TFP) and labor productivity on FDI, the study reveals that domestic firms significantly benefit from productivity spillovers when their level of technology is moderately below that of foreign competitors. The finding suggests that promoting FDI in Cambodia is needed when the technology gap exists.
Keywords: FDI, Cambodia, Productivity, Spillovers, Technology Gap, Absorptive Capacity
JEL: F2 - International Factor Movements and International Business: General
O3 - Technological Change; Research and Development: General
Manuscript Received : Jan 11 2012 Manuscript Accepted : Jul 20 2012

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