Open AccessPosted Content
Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?
Reads0
Chats0
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.read more
Citations
More filters
Posted Content
Financial sector development and productivity growth
TL;DR: In the face of uncertainty resulting from changes in regulatory structure and the development of financial institutions to foster market economy, many countries may not be able to achieve their maximum growth potential as discussed by the authors.
Journal ArticleDOI
Foreign investment in Portugal and knowledge spillovers: From the Methuen Treaty to the 21st century
TL;DR: In this article, the impact of foreign direct investment (FDI) on host country firms' capabilities, industry competitiveness and long-term economic development is investigated. But the authors focus on the case of Portugal over a period of 300 years.
Book ChapterDOI
Foreign Direct Investment (FDI)
TL;DR: The inflow of Foreign Direct Investment (FDI) is typically associated with a variety of economic benefits, ranging from increased productivity to enhanced innovation and technological development as mentioned in this paper, and the benefits of FDI can be attributed to:
Journal ArticleDOI
Research-driven or party-promoted? Factors affecting patent applications of private small and medium-sized enterprises in China’s Pearl River Delta
Journal ArticleDOI
Multinational Corporations and Knowledge Flows: Evidence from Patent Citations
TL;DR: In this article, the authors investigate whether foreign direct investment by a multinational corporation increases the likelihood that knowledge about new technologies and production processes will be exchanged between foreign and domestic firms and find that countries that are technological followers gain three times as much knowledge from inward FDI as leaders.
References
More filters
Posted Content
A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
TL;DR: In this article, the authors study whether the conclusions from existing studies are robust or fragile when small changes in the list of independent variables occur, and they find that although "policy"appears to be importantly related to growth, there is no strong independent relationship between growth and almost every existing policy indicator.
Posted Content
A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
TL;DR: The authors examined whether the conclusions from existing studies are robust or fragile to small changes in the conditioning information set and found a positive, robust correlation between growth and the share of investment in GDP and between investment share and the ratio of international trade to GDP.
Journal ArticleDOI
How does foreign direct investment affect economic growth
TL;DR: In this article, the effect of FDI on economic growth in a cross-country regression framework was investigated. And they found that FDI contributes to economic growth only when a sufficient absorptive capability of the advanced technologies is available in the host economy.
Posted Content
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.
Posted Content
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.
Related Papers (5)
Much ado about nothing? do domestic firms really benefit from foreign direct investment?
Holger Görg,David Greenaway +1 more
Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
Brian J. Aitken,Ann Harrison +1 more