RT Journal Article
T1 Is FDI a potential tool for boosting firm’s performance?: firm level evidence from Ecuador
A1 Camino Mogro, Segundo
A1 Bermúdez Barrezueta, Natalia
A1 Armijos, Mary
AB In developing countries, the evidence regarding the direct and indirect effects of FDI on economic and financial performance at the firm level is mixed. To contribute to this literature, we provide empirical evidence of direct and indirect effects of FDI on firm’s performance, using return on assets (ROA), gross revenues and gross revenues growth rate as performance measures. We examine the private formal enterprise sector in Ecuador from 2007 to 2018. Our identification strategy relies on the use of the Generalized Method of Moments (GMM) methodology for dynamic panel data which allows us to control for potential endogeneity, autocorrelation and heteroskedasticity issues. The results suggest that firms with inward FDI grow faster than their counterparts, and firms with higher amounts of FDI as a share of total revenues have on average higher levels of gross revenues. Moreover, we find negative horizontal wages and gross revenues spillover effects on gross revenues growth rates, but positive horizontal gross revenues spillover effects on ROA. There is also significant evidence of negative horizontal spillover effects in all economic sectors, whereas evidence for forward and backward spillovers is heterogeneous across them.
PB Springer
SN 0936-9937
YR 2023
FD 2023-01-14
LK https://hdl.handle.net/20.500.14352/103259
UL https://hdl.handle.net/20.500.14352/103259
LA eng
NO Camino-Mogro, S., Bermúdez-Barrezueta, N. & Armijos, M. Is FDI a potential tool for boosting firm’s performance? Firm level evidence from Ecuador. J Evol Econ 33, 341–391 (2023). https://doi.org/10.1007/s00191-022-00806-2
NO 2023 Acuerdos transformativos CRUE
NO Ministerio de Economía y Competitividad (España)
DS Docta Complutense
RD 10 abr 2025