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

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...

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Bibliographic Details
Main Authors:	Görg, Holger, Greenaway, David
Language:	English en_US
Published:	World Bank 2013
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&AMP;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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Summary:	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.

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

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