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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.read more
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Essays on the Impact of Foreign Direct Investments in
TL;DR: In this article, the impact of foreign direct investment (FDI) inflows towards Africa on economic growth, industrialization, and technological transfer is analyzed. And the authors find that FDI inflows did not have a significant impact on the economic growth in the African region during the period of interest.
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Efficiency spillovers from FDI in the Indian machinery industry: a firm-level study using panel data models
TL;DR: In this article, a micro-level framework of impact of FDI in an industry is adopted to examine the following three issues in the context of Indian machinery industry (IMI) - division 28 of National Industrial Classification, 2008.
Journal ArticleDOI
Entry and Survival in the Export Market: Spillovers from Foreign and Outward-Looking Domestic Firms in Ethiopia
Melaku Abegaz,Sajal Lahiri +1 more
TL;DR: In this article, the authors examined spillovers from domestic-exporting and foreign-owned firms to the export entry and exit of local manufacturing firms in Ethiopia for the period 1996-2010.
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International Technology Transfer and Foreign Direct Investment
TL;DR: This paper reviewed the evidence on international technology transfer taking place through flows of foreign direct investment and concluded that FDI is an important channel for transmitting technologies and know-how across countries, and discussed some policy recommendations.
References
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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.
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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.
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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.
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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.
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