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FDI and Host Country Productivity: A Review

Argentino Pessoa ()

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This paper reviews arguments and empirical findings on positive effects of FDI on host country firms. With the exception of the only unambiguous result of microeconometric studies, which is the superior productivity of foreign firms, the main conclusion extracted from empirical studies is the diversity of results. This diversity suggests that FDI will have different effects depending on the ‘technological congruence’ and ‘social capability’ of the host economy, as well as the familiarity of indigenous firms to products and technology of a given multinational corporation.

Keywords: Economic Growth; Foreign Direct Investment; Multinational Corporations; Spillovers; Technology Transfer (search for similar items in EconPapers)
JEL-codes: D21 D62 F21 F23 F43 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2007-10
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (7) Track citations by RSS feed

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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:251

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