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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?
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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.Abstract:
Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper begins by reviewing possible sources of spillovers. It then provides a comprehensive evaluation of the empirical evidence on productivity, wages and exports spillovers in developing, developed and transitional economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is hard to find. The reasons for this are explored and the paper concludes with a review of policy aspects.read more
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Flows of Foreign Capital into Developing Countries: A Critical Review
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New exports matter: Discoveries, foreign direct investment and growth, an empirical assessment for Middle East and North African countries
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TL;DR: In this article, the effects of exports' diversification on growth in MENA countries and the way new exports and foreign direct investment interact with each others in the process of growth are investigated.
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FDI spillovers at different levels of industrial and spatial aggregation: Evidence from the electricity sector
TL;DR: In this article, the authors examined the impact of foreign direct investment (FDI) spillovers in the aggregate and disaggregated sub-sectors of the European electricity sector.
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FDI, Technology Spillovers, and Wages
TL;DR: In this paper, the authors distinguish multinational firm (MNE) technology-spillover from learning effects, and propose a model that predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers and add it to experienced ones to prevent them from moving to local competitors.
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Foreign Direct Investment and Export Diversification in Low Income Nations
TL;DR: In this article, the authors identify a number of potential drivers of export diversification including firm productivity, the cost of trade, the fixed costs of export market entry and consumer preferences and incomes.
References
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