Journal ArticleDOI
Who Benefits from Foreign Direct Investment in the UK
TLDR
In this article, the authors investigate if there is any productivity or wage gap between foreign and domestic firms in the UK and if the presence of foreign firms in a sector raises the productivity of domestic firms.Abstract:
The presumed higher productivity of foreign firms and resulting spillovers to domestic firms has led governments to offer financial incentives to foreign firms. We investigate if there is any productivity or wage gap between foreign and domestic firms in the UK and if the presence of foreign firms in a sector raises the productivity of domestic firms. Our results indicate that foreign firms do have higher productivity than domestic firms and they pay higher wages. We find no aggregate evidence of intra‐industry spillovers. However, firms with low productivity relative to the sector average, in low‐skill low foreign competition sectors gain less from foreign firms.read more
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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.
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Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?
TL;DR: 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.
Book
The Happy Few: The Internationalisation of European Firms
Thierry Mayer,Thierry Mayer,Gianmarco I.P. Ottaviano,Gianmarco I.P. Ottaviano,Gianmarco I.P. Ottaviano +4 more
TL;DR: A lack of statistical information at the firm level has so far prevented the systematic inclusion of firm-level analysis in the policymaker's standard toolbox as mentioned in this paper, and their analysis reveals some new facts that are simply unobservable at the aggregate level.
Journal ArticleDOI
When and where does foreign direct investment generate positive spillovers? A meta-analysis
Klaus E. Meyer,Evis Sinani +1 more
TL;DR: The authors applied competitive dynamics theory to analyze these contextual moderators of spillovers, and test hypotheses derived in a meta-analysis of the empirical literature on spillovers and found that spillovers vary across countries at different levels of economic development.
Journal ArticleDOI
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.
References
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The International Operations of National Firms: A Study of Direct Foreign Investment
TL;DR: The story about the delayed publication of this seminal work is by now probably familiar to most specialists in international business as discussed by the authors, and it is a belated recognition of the brillance of Hymer's thesis.
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.
Book
Technological Innovation and Multinational Corporations
TL;DR: In this paper, the authors present a dynamic model of the post-war growth of international economic activity in Europe and the USA, and the evolution of technological competition between US and European firms technological advantage as a determinant of the international economic activities of firms technological competition and intra-industry production in the industrialised world.
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.