This paper presents the spillover effect resulting from the foreign direct investment with a focus on the manufacturing firms in Ethiopia. Being one of the pillars of the Growth and Transformation Plan (GTP), identifying the productivity spillovers arising from the FDI to the sector is timely....

The paper extends the findings of Coe and Helpman (1995) model of R&D spillovers by considering foreign direct investment (FDI) as a channel for knowl- edge spillovers in addition to imports. Deeper insights on the issue are provided by examining inter-relationship between knowledge spillovers...