Open AccessPosted Content
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
Citations
More filters
Book
Do multinationals feed local development and growth
TL;DR: In this paper, the authors analyzed the impact of multinational enterprises' activities on host development and growth, the creation of linkages and knowledge flows in local contexts, and the relationships between foreign activities and home competitiveness.
Journal ArticleDOI
FDI, Global Value Chains, and Local Sourcing in Developing Countries
TL;DR: In this article, the authors investigated whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors, and they found that more intense GVC participation and upstream specialization are associated with a higher share of inputs sourced locally byforeign investors.
Journal ArticleDOI
Does foreign direct investment expand the capability set in the host economy? A sectoral analysis
TL;DR: In this article, the authors use the recently developed economic complexity index (ECI) to measure the complexity of the productive structure of an economy, and its values can be interpreted as the number of capabilities present in a country.
Journal ArticleDOI
Complementarity Effect of Financial Development and FDI on Investment in Sub‐Saharan Africa: A Panel Data Analysis
TL;DR: In this article, the interactive effect of financial development and foreign direct investment (FDI) inflows on domestic investment in sub-Sahara Africa (SSA) was examined using a panel data of 16 SSA countries sampled from 1980 to 2014.
References
More filters
Posted Content
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.
Posted Content
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.
Posted Content
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.
Posted Content
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.
Related Papers (5)
Much ado about nothing? do domestic firms really benefit from foreign direct investment?
Holger Görg,David Greenaway +1 more
Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
Brian J. Aitken,Ann Harrison +1 more