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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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Determinant Factors of FDI Spillovers - What Do We Really Know?

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Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis

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Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries

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References
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Multinational Companies and Productivity Spillovers: A Meta‐Analysis

TL;DR: In this paper, a meta-analysis of the literature on multinational companies and productivity spillovers is presented, and the authors investigate whether certain aspects of the study design affect the results, and whether there is publication bias in the literature.
Posted Content

Foreign Investment and Productivity Growth in Czech Enterprises

TL;DR: This paper found that foreign direct investment had a greater positive impact on total factor productivity in firms in the Czech Republic over a four-year period than joint ventures did, suggesting that parent firms transferred more know-how to affiliates than joint venture firms got from their partners.
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Technology, Transfer and Spillovers: Does Local Participation With Multinationals Matter?

TL;DR: In this article, the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates were examined using unpublished Indonesian micro data, and the results showed that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers.
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The Effects of Foreign Direct Investment on Domestic Firms: Evidence from Firm Level Panel Data in Emerging Economies

TL;DR: In this article, the authors investigated the effects of foreign direct investment on the productivity performance of domestic firms in three emerging economies of Central and Eastern Europe: Bulgaria, Romania and Poland.
Posted Content

Foreign Investment and Technology Transfer: a Simple Model

TL;DR: In this paper, the authors develop a model in which international technology transfer through foreign direct investment emerges as an endogenized equilibrium phenomenon, resulting from the strategic interaction between subsidiaries of multinational corporations and host country firms.
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