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Foreign direct investment as a catalyst for industrial development

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TLDR
In this paper, the authors developed an analytical framework to assess the effect of FDI on local firms in the same industry and showed that FDI may lead to the establishment of local industrial sectors.
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This article is published in European Economic Review.The article was published on 1999-02-15 and is currently open access. It has received 1555 citations till now. The article focuses on the topics: Foreign direct investment.

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Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

TL;DR: In this paper, the authors studied the impact of trade and foreign direct investment on the productivity of domestic firms in the manufacturing sector in the country of Lithuania and found that a 10 percent increase in the foreign presence in downstream sectors is associated with a 0.38 percent rise in output of each domestic firm in the supplying industry.
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Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

TL;DR: In this paper, the authors focus on the issue of FDI spillovers through backward linkages and go beyond existing studies by shedding some light on factors driving this phenomenon, which is consistent with the existence of knowledge spillovers from foreign affiliates to their local suppliers, but they may also be a result of increased competition in upstream sectors.
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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?

TL;DR: In this paper, a comprehensive evaluation of the empirical evidence on productivity, wages and exports spillovers in developing, developed and transitional economies is presented. But, although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is hard to find.
Journal ArticleDOI

Much ado about nothing? do domestic firms really benefit from foreign direct investment?

TL;DR: In this article, the authors evaluate the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies and conclude that robust empirical support for positive spillovers is at best mixed.
References
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Book

The Spatial Economy: Cities, Regions, and International Trade

TL;DR: In this paper, the authors proposed a method to improve the quality of the data collected by the data collection system by using the information gathered from the data set of the user's profile.
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Multinational Enterprise and Economic Analysis

TL;DR: The third edition of Multinational Enterprise and Economic Analysis surveys the contributions that economic analysis has made to our understanding of why multinational enterprises exist and what consequences they have for the workings of the national and international economies.
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The Boundaries of Multinational Enterprises and the Theory of International Trade

TL;DR: In this paper, the notion of knowledge capital as a mobile, joint input into geographically separated production facilities is used to explain the preference for transferring technologies internally within the firm, rather than through arm's-length markets.
Journal ArticleDOI

Are there positive spillovers from direct foreign investment

TL;DR: In this article, the authors employ a unique firm-level dataset to test for such spillovers in the Moroccan manufacturing sector and find evidence that the dispersion of productivity is smaller in sectors with more foreign firms.
Journal ArticleDOI

Spillovers, Foreign Investment, and Export Behavior

TL;DR: The authors examined whether spillovers associated with one firm's export activity reduce the cost of exporting for other firms, identifying two sources of spillovers: export production in general and the specific activities of multinationals.
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Trending Questions (1)
How do FDIs affect the economic situation of local mining communities?

The provided paper does not specifically address the impact of FDIs on local mining communities. The paper focuses on the effects of FDIs on local firms in the same industry and the establishment of local industrial sectors.