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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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Book Chapter
Productivity spillovers from multinational companies
Abstract: Many host country governments assume that inward Foreign Direct Investment (FDI) can bestow large benefits to the economy, bringing not only new investment that boosts national income but also an inflow of new foreign knowledge and technology. The purpose of this chapter is to review the evidence of the importance of these productivity spillovers from inward FDI. It finds that the international evidence on productivity spillovers is mixed. It argues that the most plausible interpretations for the lack of consistent findings are that, firstly, characteristics specific to individual countries can influence the extent to which spillovers happen, secondly, individual firms’ level of absorptive capacity is important and thirdly, focusing purely on horizontal spillovers misses important vertical channels of knowledge transfer, in particular through backward linkages, which may bestow larger external effects. The author is grateful to Aoife Hanley for helpful comments on an earlier draft. PRODUCTIVITY .SPILLOVERS .FROM .MULTINATIONAL .COMPANIES
Journal ArticleDOI
How East Asian Industry Transfer Affects the U.S.-China Trade Imbalance: Economic Mechanisms and Policy Implications
TL;DR: Wang et al. as mentioned in this paper further substantiates the theoretical hypothesis that the East Asian industry transfer has a strong export transfer effect and it is unlikely that the U.S.-China trade imbalance will be alleviated fundamentally in the next five to ten years.
Dissertation
The Influence of the Macroeconomic Variables and Business Environment on the Foreign Direct Investment Inflows in Pakistan: The Moderating Role of Political Stability
TL;DR: In this article, the role of political stability on the relationship between macroeconomic variables, business environment variables and the foreign direct investment (FDI) inflows in the case of promising nations such as Pakistan in the SAARC region was evaluated.
Journal ArticleDOI
Why are spillovers through backward linkages from multinational corporations in the Czech motor industry still limited
TL;DR: In this article, the AMADEUS firm-level database and annual reports of companies were used to study spillovers through backward linkages from multinational corporations onto indigenous suppliers in the Czech motor industry.
References
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Posted Content
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Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages
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