In this paper we analyse productivity spillovers from foreign direct investment using firm level panel data UK … spillovers from export oriented vs domestic market oriented FDI, and allow for differing effects depending on domestic firms …' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are very complex …

participating in export activity can increase the spillover absorption from FDI through the horizontal and backward linkages … although local firms are less likely to take advantage of productivity spillovers during this period. In addition, these … exporting firms confront the productivity protection of the FDI firms in the same industries. In contrast, the higher their …

in the same region is associated with increasing productivity of local firms, especially in form of cross … distanced regions. FDI tends to be associated with employment decline in manufacturing firms, but some growth in small firms. …