The Impact of FDI on Technological Change and Long-Run Growth

Patricia Hofmann
Additional contact information
Patricia Hofmann: University of Hohenheim

Chapter Chapter 4 in The Impact of International Trade and FDI on Economic Growth and Technological Change, 2013, pp 101-168 from Springer

Abstract: Abstract In recent years there has been a blossoming of research on the determinants and effects of FDI on the firm level. This is due not only to increasing availability of micro data but also to one major insight of International Trade Theory: While sticking to the ‘general equilibrium’ standard, models have to deviate from ‘perfect competition’ and ‘constant returns to scale’ assumptions in order to fully appreciate the heterogeneity of the motives for and implications of FDI. Markusen (2008) states that – in contrast to the macroeconomic treatment of FDI as simple capital flow – trade theory has already differentiated since the 1980s between FDI and portfolio investments. However, only recently do the bulk of researchers anatomise further the effects of FDI on different groups (the affiliate firm, competitors, suppliers or the aggregate country) and also distinguish between various forms of FDI (greenfield investment, mergers, foreign acquisitions (majority and minority ownership), joint ventures).

Keywords: Foreign Direct Investment; Host Country; Knowledge Spillover; Domestic Firm; Foreign Ownership (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:conchp:978-3-642-34581-4_4

Ordering information: This item can be ordered from
http://www.springer.com/9783642345814

DOI: 10.1007/978-3-642-34581-4_4

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().