This paper examines intra-industry productivity spillovers from foreign direct investment (FDI) in the UK manufacturing sector. The empirical analysis uses panel data for 48 UK industries over the period 1991-1995. A major contribution is empirical evidence on spillover effects in situations...

The existing literature treats advanced technology sourcing as the only cause of reverse productivity spillovers from local to foreign firms and implies that mutual spillovers between foreign and local firms can only happen in the developed world. This paper argues that the diffusion of...