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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?

TLDR
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.

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Economic reform and foreign direct investment in Latin America: a critical assessment

TL;DR: A review of the literature on FDI in Latin America during the reform period shows that very few nations in the region actually received signifi cant amounts of FDI as a result of reform, and when FDI did materialize, it often fell far short of generating the necessary linkages required to make FDI work for economic development as mentioned in this paper.
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Productivity Spillovers from Foreign Direct Investment in the Brazilian Processing Industry

TL;DR: In this article, the authors investigate whether the presence of FDI produces productivity spillovers in Brazilian processing industries and find evidences of the coexistence of both positive and negative effects arising from FDI on the productivity of Brazilian industries.
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Inefficiency of public road transport and internal corporate governance mechanisms

TL;DR: In this article, the authors examined the interrelations among ownership, board and manager characteristics and firm efficiency in a sample of public road transport operators, using a stochastic analysis frontier model.
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Inward greenfield FDI and patterns of job polarization

TL;DR: In this paper, the effects of two types of FDI inflows, namely foreign investment in high-skill and low-skill activities, on job polarization were investigated, and it was shown that low skill foreign investment shifts employment from high- to medium- and low skill jobs, while skill-intensive FDI generally leads to skill upgrading.
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Do domestic firms benefit from FDI?: evidence from Korean manufacturing industries

TL;DR: In this article, the authors tried to provide an evidence of the effect of FDI in developing country by comparing industry level value-added to inward and outward FDI stocks in Korea in a production function framework.
References
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