Foreign direct investment spillovers: Evidence from the British retail sector

Dolores Añón Higón, Nicholas Vasilakos

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)


This paper discusses the impact of foreign-ownership presence on the productivity performance of British-owned domestic retailers. In particular, we analyse the existence of productivity spillovers, in the form of knowledge transfer, by using establishment-level data from the Annual Respondents Database over the period 1997–2003. The results confirm the presence of such spillovers and highlight their positive and significant impact on the productivity of domestic firms, although these spillovers are mostly confined to the region in which foreign subsidiaries locate. There is also evidence that the productivity benefit from regional foreign direct investment spillovers increases with the absorptive capacity of domestic retailers.
Original languageEnglish
Pages (from-to)642-666
Number of pages25
JournalThe World Economy
Issue number4
Publication statusPublished - 2011

Cite this