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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?

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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.

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Global Production Networks, Foreign Direct Investment, and Supplier Linkages in the Integrated Peripheries of the Automotive Industry

Petr Pavlínek
- 15 Mar 2018 - 
TL;DR: In this paper, the authors examined the regional development effects of foreign direct investment (FDI) in the integrated peripheries of the automotive industry by analyzing supplier linkages between foreign sub-regions.
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Firm-level Productivity Spillovers in China's Chemical Industry: A Spatial Hausman-Taylor Approach

TL;DR: In this article, the role of intra-sectoral spillovers in total factor productivity across Chinese producers in the chemical industry is assessed, and the authors find evidence of positive spillovers across chemical manufacturers and a large and significant detrimental effect of public ownership on total factors productivity.
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The productivity and export spillovers of the internationalisation behaviour of Belgian firms

TL;DR: In this paper, the authors analyse to what extent the decision to start exporting may be subject to spillovers of the internationalisation behaviour of other (foreign and domestic) firms, and distinguish between two possible channels: effects on productivity and effects on the perceived level of sunk costs of exporting.
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Linking corporate productivity to foreign direct investment: An empirical assessment

TL;DR: In this paper, the authors examined whether foreign firms generate productivity spillovers in the Portuguese manufacturing industry and found no differences on productivity spillover associated to firm-specific characteristics. But they did not find consistent and conclusive evidence to support the existence of positive spillovers.
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The Role of the Efficiency Gap for Spillovers from FDI: Evidence from the UK Electronics and Engineering Sectors

TL;DR: In this article, the role of the efficiency gap in determining whether or not domestic firms benefit from productivity spillovers from FDI is investigated. But the authors focus on two manufacturing sectors in detail, namely, electronics and engineering.
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