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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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Journal ArticleDOI
Spillovers from Foreign Firms through Worker Mobility: An Empirical Investigation*
Holger Görg,Eric Strobl +1 more
TL;DR: This paper investigated whether spillovers occur via worker mobility and found that firms which are run by owners who worked for multinationals in the same industry immediately prior to opening up their own firm are more productive than other domestic firms.
Journal ArticleDOI
Foreign direct investment, economic freedom and economic growth: International evidence
TL;DR: In this paper, the authors investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries and reveal that FDI by itself has no direct (positive) effect on output growth.
Journal ArticleDOI
Productivity spillovers from R&D, exports and FDI in China's manufacturing sector
TL;DR: The authors assesses productivity spillovers from R&D, exports and the very presence of foreign direct investment in China's manufacturing sector, based on a panel of more than 10,000 indigenous and foreign-invested firms for 1998-2001.
Book ChapterDOI
Foreign Direct Investment, Absorptive Capacity and Regional Innovation Capabilities: Evidence from China
TL;DR: In this article, the authors investigated the impact of foreign direct investment on the development of regional innovation capabilities using a panel data set from China and found that FDI has a significant positive impact on the overall regional innovation capacity.
Book ChapterDOI
Innovation and Economic Development
TL;DR: In this article, the authors argue that innovation may be as relevant in the developing part of the world as elsewhere, and that to exploit technology to their own advantage, developing countries need to develop the necessary capabilities for doing so.
References
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Posted Content
A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
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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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