Foreign Direct Investment, Competition and Industry Performance

Jürgen Bitzer and Holger Görg

The World Economy, 2009, vol. 32, issue 2, 221-233

Abstract: This paper investigates the productivity effects of inward and outward foreign direct investment using industry‐ and country‐level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that the effects of FDI work through direct compositional effects as well as changing competition in the host country. Our results show that there are, on average, productivity benefits from inward FDI, although we can identify a number of countries which, on aggregate, do not appear to benefit in terms of productivity. On the other hand, a country's stock of outward FDI is, on average, negatively related to productivity. However, again there is substantial heterogeneity in the effect across OECD countries.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9701.2008.01152.x

Related works:
Working Paper: Foreign direct investment, competition and industry performance (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:32:y:2009:i:2:p:221-233

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).