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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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Constructing a Ladder for Growth: Policy, Markets, and Industrial Upgrading in China
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Productivity spillovers from foreign MNEs on domestic manufacturing firms: is co-location always a plus?
TL;DR: In this paper, the authors analyzed productivity spillovers from foreign MNEs on domestic manufacturing firms using a database on foreign MNOs in Italy and found that local firms do benefit from the presence of foreign MMEs, and the effect is higher when local and foreign firms in manufacturing sectors are co-located.
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Foreign direct investment and export spillovers: how do export platforms fare? ∗
Frances Ruane,Julie Sutherland +1 more
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National innovation policy and global open innovation: exploring balances, tradeoffs and complementarities
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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
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How does foreign direct investment affect economic growth
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Multinational Enterprise and Economic Analysis
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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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