Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87306
Authors: 
Fons-Rosen, Christian
Kalemli-Ozcan, Sebnem
Sorensen, Bent E.
Villegas-Sanchez, Carolina
Volosovych, Vadym
Year of Publication: 
2013
Series/Report no.: 
Tinbergen Institute Discussion Paper 13-058/IV
Abstract: 
We quantify the causal effect of foreign investment on total factor productivity (TFP) using a new global firm-level database. Our identification strategy relies on exploiting the difference in the amount of foreign investment by financial and industrial investors and simultaneously controlling for unobservable firm and country-sector-year factors. Using our well identified firm level estimates for the direct effect of foreign ownership on acquired firms and for the spillover effects on domestic firms, we calculate the aggregate impact of foreign investment on country-level productivity growth and find it to be very small.
Subjects: 
Multinationals
FDI
Knowledge Spillovers
Selection
Productivity
JEL: 
E32
F15
F36
O16
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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