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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
Citations
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Firm heterogeneity, exporting and foreign direct investment*
David Greenaway,Richard Kneller +1 more
TL;DR: A rapidly expanding literature on firm heterogeneity and firm level globalisation strategies has developed over the last decade as discussed by the authors, with new insights on why some firms export and others do not, why some fail to survive in export markets and some choose to produce overseas rather than export.
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Determinant Factors of FDI Spillovers - What Do We Really Know?
Nuno Crespo,Maria Paula Fontoura +1 more
TL;DR: In this article, the authors survey the arguments that support these factors and the empirical evidence already produced, and the results show contrary effects or, in some cases, are still insufficient to draw reliable conclusions.
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Capital Account Liberalization: Theory, Evidence, and Speculation
TL;DR: The authors argue that the textbook theory of liberalization holds up quite well to a critical reading of this literature, and explain why it is that most studies do not really address the theory they set out to test.
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Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis
TL;DR: In this article, the effect of foreign direct investment on productivity growth is investigated in manufacturing sectors where technology-exploiting multinationals are prevalent, and the results point to the presence of nonlinear threshold effects: the productivity benefit from FDI increases with absorptive capacity until some threshold level beyond which it becomes less pronounced.
Journal ArticleDOI
Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries
Xiaohui Liu,Trevor Buck +1 more
TL;DR: In this paper, the impact of different channels for international technology spillover on the innovation performance of Chinese high-tech industries, using panel data analysis, was investigated empirically, showing that learning-by-exporting (and importing) promotes innovation in Chinese indigenous firms.
References
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Foreign direct investment as a catalyst for industrial development
TL;DR: In this paper, the authors developed an analytical framework to assess the effect of FDI on local firms in the same industry and showed that FDI may lead to the establishment of local industrial sectors.
Posted Content
An Empirical Assessment of the Proximity-Concentration Tradeoff between Multinational Sales and Trade
TL;DR: The authors empirically investigated the role of transport costs, trade and investment barriers, production scale economies, and firm-specific advantages in determining the use of overseas production relative to exports, and found that the effect of freight factors on the level of affiliate sales is not robust.
Posted Content
Foreign Direct Investment and Relative Wages: Evidence from MexicoAS Maquiladoras
TL;DR: The authors studied the impact of foreign direct investment (FDI) on the share of skilled workers in total wages in Mexico using state-level data on two-digit industries from the Industrial Census for the period 1975 to 1988.
Journal ArticleDOI
Multinational Firms, Competition, and Productivity in Host-Country Markets
TL;DR: In this paper, the authors test for certain benefits of foreign direct investment in the manufacturing sectors of two leading host countries-Canada and Australia-and find that these potential benefits can be divided into three classes.
Journal ArticleDOI
Foreign direct investment in developing countries and growth: A selective survey
TL;DR: In this article, the authors survey the latest developments in the literature on the impact of inward foreign direct investment (FDI) on growth in developing countries, and show that FDI is a composite bundle of capital stocks, know-how, and technology, and hence its impact on growth is expected to be manifold and vary a great deal between technologically advanced and developing countries.
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