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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?
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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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The role of exporting and linkages for productivity spillovers from FDI
TL;DR: In this paper, productivity spillovers from foreign direct investment using firm level panel data UK manufacturing industries from 1992 to 1999 were investigated through horizontal, backward and forward linkages, and the results suggest that the mechanisms through which spillovers affect domestic firms are very complex and that there are substantial differences in spillover benefits for domestic exporters and non-exporters.
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Does competition and foreign investment spur industrial efficiency?: firm-level evidence from Indonesia
TL;DR: Results suggest that firms operating in less competitive sectors in Indonesia experience higher technical efficiency, and that the efficient structure hypothesis (ESH) applies in Indonesia, as more efficient firms gain in market share as a result from dynamic competition.
Journal ArticleDOI
Multinationals and productivity spillovers
TL;DR: In this article, the authors discuss the evidence on productivity spillovers in the UK and provide further results, concluding that spillovers depend on the market orientation of FDI, with export oriented FDI being more likely to generate positive spillovers, while domestic market oriented foreign FDI seems to crowd out domestic firms and reduce their productivity.
Dissertation
Essays on foreign direct investment, technology transfer and international trade : ricardian approaches and empirical evidence
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TL;DR: In this article, a review of the literature on how technolo gical, economic and social factors interact in the development process is presented, based on data for 75 countries on diff erent levels of development, suggesting that there is a strong correlation between technological capability, (innovation-friendly) governance and social capital.
References
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