Abstract:
We analyse traditional productivity spillovers from foreign to local firms and reverse productivity spillovers from local to foreign firms. We argue that the extent of mutual productivity spillovers depends on the absorptive capacity and technology gap. We tested our hypotheses with panel data on Slovak firms for the period 2003-2012. We find that traditional productivity spillovers through output are positive, but the spillover effects through capital are mostly negative. The effect of the technology gap on productivity spillovers is conducive. Non-linear effects were found in services and high-tech industries. Reverse productivity spillovers through capital were positive in the manufacturing industry.
