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

Holger Görg () and Sir David Greenaway ()

No 3485, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper begins by reviewing possible sources of 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 hard to find. The reasons for this are explored and the paper concludes with a review of policy aspects.

Keywords: foreign direct investment; productivity spillovers; technology transfer (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn
Date: 2002-08
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