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Title:Much ado about nothing? Do domestic firms really benefit from foreign direct investment? PDF Logo
Authors:Görg, Holger
Greenaway, David
Issue Date:2003
Citation:[Series:] IZA discussion papers [Editor:] Forschungsinstitut zur Zukunft der Arbeit, Bonn [No.:] 944
Series/Report no.:IZA Discussion paper series 944
Abstract:Governments the world over offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. This paper begins by reviewing possible sources of FDI induced 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, at best, mixed. The reasons for this are explored and the paper concludes with a review of policy aspects.
Subjects:foreign direct investment , multinationals, spillovers , productivity , wages , exports
JEL:F21
F23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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