Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?

Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources of induced spillovers from foreign direct investment. This article evaluates the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is at best mixed. The article explores the reasons and concludes with a review of policy aspects.

Bibliographic Details

Main Authors:	Görg, Holger, Greenaway, David
Format:	Journal Article biblioteca
Language:	English en_US
Published:	World Bank 2004-09-01
Subjects:	ACCESS TO INFORMATION, ACCOUNTING, BEST PRACTICE, CAPABILITY, CAPITAL FORMATION, COLLABORATION, COMMUNICATION NETWORKS, COMPETITIVE LABOR MARKETS, COMPETITORS, CORPORATE GOVERNANCE, CULTURAL CHANGE, DATA ANALYSIS, DEVELOPMENT ECONOMICS, DISTRIBUTION NETWORKS, DOMESTIC FIRM, DOMESTIC FIRMS, DOMESTIC INVESTMENT, DOMESTIC SUPPLIERS, DRIVERS, E-MAIL, E-MAIL ADDRESS, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC THEORY, EFFICIENCY BENEFITS, ELECTRONICS INDUSTRY, EMPLOYMENT, EQUIPMENT, EXCHANGE RATE, EXPORT MARKETS, EXTERNALITIES, FDI, FINANCIAL MARKETS, FINANCIAL SUPPORT, FIRMS, FIXED COSTS, FOREIGN AFFILIATES, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN FIRM, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN MARKETS, FOREIGN OWNERSHIP, FOREIGN TECHNOLOGY, FOREIGN-OWNED FIRMS, GLOBAL ECONOMY, GLOBAL MARKETS, GLOBALISATION, GLOBALIZATION, HOST COUNTRIES, HOST COUNTRY, HOST ECONOMY, HOST-COUNTRY, HUMAN CAPITAL, INCOME, INDUSTRIAL COUNTRIES, INDUSTRIAL DEVELOPMENT, INDUSTRIAL ECONOMICS, INFRASTRUCTURE DEVELOPMENT, INNOVATION, INTERNATIONAL BUSINESS, INTERNATIONAL COMPETITION, INTERNATIONAL ECONOMICS, INTERNATIONAL INVESTMENT, INTERNATIONAL TRADE, INVESTMENT POLICIES, INVESTMENT PROMOTION, INWARD FOREIGN DIRECT INVESTMENT, LABOR DEMAND, LABOR MARKET, LABOR PRODUCTIVITY, LABOUR, LABOUR MARKETS, LABOUR TURNOVER, LEARNING, LICENSE, LICENSING, MANUFACTURING, MANUFACTURING ESTABLISHMENTS, MANUFACTURING FIRMS, MANUFACTURING INDUSTRIES, MANUFACTURING INDUSTRY, MANUFACTURING SECTOR, MANUFACTURING SECTORS, MARGINAL COSTS, MARKET FAILURES, MARKETING, MULTINATIONAL, MULTINATIONAL COMPANIES, MULTINATIONAL CORPORATIONS, MULTINATIONAL ENTERPRISE, MULTINATIONAL ENTERPRISES, MULTINATIONALS, NEW TECHNOLOGY, ORGANIZATIONAL INNOVATIONS, PHYSICAL INFRASTRUCTURE, POLITICAL ECONOMY, PRODUCTION PROCESSES, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROPRIETARY KNOWLEDGE, R&D, RELIABILITY, RENTS, RESULT, RESULTS, SEARCH, SKILLED LABOR, SKILLED WORKERS, SUPERVISION, SUPPLIERS, SUPPLY CHAIN, TARGETS, TAX INCENTIVES, TAXATION, TECHNICAL ASSISTANCE, TECHNOLOGY DIFFUSION, TECHNOLOGY GAP, TECHNOLOGY GAPS, TECHNOLOGY SPILLOVERS, TECHNOLOGY TRANSFER, TIME PERIOD, TRANSMISSION, USES, VERTICAL LINKAGES, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2004/09/17559758/much-ado-nothing-domestic-firms-really-benefit-foreign-direct-investment http://hdl.handle.net/10986/16412
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