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

Holger Görg and Sir David Greenaway ()

No 944, IZA Discussion Papers from IZA Network @ LISER

Abstract: Governments the world over offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. This paper begins by reviewing possible sources of FDI induced 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, at best, mixed. The reasons for this are explored and the paper concludes with a review of policy aspects.

Keywords: foreign direct investment; multinationals; spillovers; productivity; wages; exports (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2003-11
New Economics Papers: this item is included in nep-ifn and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Published - published in: World Bank Research Observer, 2004, 19(2), 171-197

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Related works:
Chapter: Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment? (2016)
Journal Article: Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp944

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