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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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Capital Inflows and Economic Growth: Does the Role of Institutions Matter?
TL;DR: This paper used a threshold regression model to find strong and robust evidence that portfolio equity (including foreign direct investment) and debt inflows have positive effects on growth only in countries with high-quality institutions.
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Bloody Business: Multinational investment in an increasingly conflict-afflicted world
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Chinese Firms' Entry to Export Markets: The Role of Foreign Export Spillovers
TL;DR: In this paper, the effect of proximity to multinational exporters on the creation of new export linkages was investigated using panel data from Chinese customs for 1997-2007, and the capacity for Chinese domestic firms to begin exporting new varieties to new markets is shown to respond positively to the export activity of neighboring foreign firms.
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Productivity spillovers through vertical linkages : evidence from 17 OECD countries
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Supplier responses to Walmart's invasion in Mexico
Leonardo Iacovone,Beata Smarzynska Javorcik,Beata Smarzynska Javorcik,Wolfgang Keller,James Tybout +4 more
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References
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A sensitivity analysis of cross-country growth regressions
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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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