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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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Foreign Ownership and Labour in Sub‐Saharan African Firms
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Transportation cost and the geography of foreign investment
TL;DR: This paper reviewed existing theories and evidence specifically addressing questions including: How is FDI distributed across space? Why does the law of gravity apply? How do the costs of transporting goods, tasks, and technologies influence firms' decisions to separate tasks geographically and locate relative to one another?
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Distance, time since foreign entry, and productivity spillovers from foreign direct investment
Bruno Merlevede,Victoria Purice +1 more
TL;DR: In this article, the authors investigated the effect of foreign direct investment on the productivity of local manufacturing firms in Romania and decompose traditional countrywide spillover measures in different components according to both proximity between foreign and domestic firms and time-since-foreign-entry.
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The competitive advantage of clusters: Cluster organisations and greenfield FDI in the European life sciences industry
TL;DR: In this paper, the authors examined the effect of cluster organizations on the international competitive advantages of clusters in the European life sciences industry and found that both the presence of cluster organisations and higher-order activities have only a small effect in attracting greenfield investments.
Journal ArticleDOI
Do Inland Provinces Benefit from Coastal Foreign Direct Investment in China
Abstract: Foreign direct investment (FDI) in China is heavily concentrated in the coastal regions. Do inland provinces benefit from coastal FDI? We use a provincial-level panel dataset and employ the fixed-effects instrumental variables regression technique to investigate the interregional spillovers from coastal FDI to inland provinces. The study finds that, on average, coastal FDI has a negative impact on the economic growth of inland provinces. In addition, depending on the different trade activities engaged in (i.e. whether processing trade or ordinary trade), coastal FDI has different impacts on the economic growth of inland provinces.
References
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