Petrakou, Marialena;
(2019)
FDI spillovers and channels of transmission in the EU: the role of financial markets and institutional development.
Doctoral thesis (Ph.D), UCL (University College London).
Abstract
This study explores the impact of foreign direct investment (FDI) spatial concentration on regional economic growth and domestic firms’ productivity. The regional dimension of FDI spillovers in the EU has not been sufficiently explored so far and hence it is important to discover whether the spatial concentration of FDI benefits the regional growth trajectories of EU regions and whether this effect is the same across all EU regions. The study first explores the effect of foreign affiliates’ presence on EU NUTSII GDP per capita growth for a time period of nine years (2005-2013) and reveals that there are specific geographical patterns that unfold when it comes to FDI regional spillovers. Moreover, this study pays attention to local absorptive capacity and to local conditions which potentially enhance the role of spatially concentrated FDI for growth and productivity. It examines the role of local financial development and institutional development as potential channels of transmission of FDI spillovers to the domestic economy and as components of local absorptive capacity. The effect of regional FDI on productivity and the role of absorptive capacity are examined through a case-study focusing on Greece. The impact of FDI on regional growth and domestic productivity is estimated with the use of two different empirical methodologies: quantitative methods (panel econometric regressions) and qualitative methods (in-depth interviews).The combined results of both the quantitative and qualitative chapters will reveal that access to finance and especially traditional bank lending, is an important determinant for channelling FDI spillovers to small-sized domestic firms in a post-crisis economy like Greece. In addition, it will be shown that other institutional factors such as university-industry linkages, entrepreneurial ecosystems, business services and innovative financial instruments play a significant role in helping the host economy benefit from FDI positive externalities.
| Type: | Thesis (Doctoral) |
|---|---|
| Qualification: | Ph.D |
| Title: | FDI spillovers and channels of transmission in the EU: the role of financial markets and institutional development |
| Event: | UCL |
| Language: | English |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10063887 |
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