Quantifying Productivity Gains from Foreign Investment
Christian Fons-Rosen (),
Sebnem Kalemli-Ozcan (),
Carolina Villegas-Sanchez () and
Vadym Volosovych ()
No 9434, CEPR Discussion Papers from C.E.P.R. Discussion Papers
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.
Keywords: FDI; Knowledge Spillovers; Multinationals; Selection (search for similar items in EconPapers)
JEL-codes: E32 F15 F36 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ifn, nep-int and nep-mac
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Journal Article: Quantifying productivity gains from foreign investment (2021)
Working Paper: Quantifying Productivity Gains from Foreign Investment (2020)
Working Paper: Quantifying Productivity Gains from Foreign Investment (2013)
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