The Role of Mediating Factors for FDI Spillovers in Ethiopia. The Role of Host Country Factors for FDI Spillovers in Manufacturing Sector:Panel Data Evidence from Ethiopia

      Аннотация: In relation to the rapid economic growth and various investment policy reforms; the number and types of FDI inflows to Ethiopia has been increasing. These steady inflows of FDI deliver important contributions to employment, foreign exchange and revenue generation of the country. FDI also affects the domestic economy indirectly through various channels one of which is productivity improvement of domestic firms resulting from technology and knowledge spillovers. The dynamic gains through spillovers from multinationals to local firms are the most valuable contribution of FDI to long-run growth and development of the country. However, the spillovers effect of FDI does not accrue automatically with the presence of foreign firms. There are various mediating factors affecting the knowledge and technology transfer from foreign to domestic firms,one of which is host country factors and institutional framework. The net impact of FDI on domestic firms largely depends on the host country factors and institutional framework where the other mediating factors are situated. As far as our knowledge is concerned, none of the previous studies assess the role of host country factors and institutions

Ключевые слова: Manufacturing Sector, FDI Spillovers, Host Country Factors