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

Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources...

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Bibliographic Details
Main Authors: Görg, Holger, Greenaway, David
Format: Journal Article
Language:English
en_US
Published: World Bank 2013
Subjects:
FDI
Online Access:http://documents.worldbank.org/curated/en/2004/09/17559758/much-ado-nothing-domestic-firms-really-benefit-foreign-direct-investment
http://hdl.handle.net/10986/16412
id okr-10986-16412
recordtype oai_dc
spelling okr-10986-164122021-04-23T14:03:30Z Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment? Görg, Holger Greenaway, David ACCESS TO INFORMATION ACCOUNTING BEST PRACTICE CAPABILITY CAPITAL FORMATION COLLABORATION COMMUNICATION NETWORKS COMPETITIVE LABOR MARKETS COMPETITORS CORPORATE GOVERNANCE CULTURAL CHANGE DATA ANALYSIS DEVELOPMENT ECONOMICS DISTRIBUTION NETWORKS DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC INVESTMENT DOMESTIC SUPPLIERS DRIVERS E-MAIL E-MAIL ADDRESS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC THEORY EFFICIENCY BENEFITS ELECTRONICS INDUSTRY EMPLOYMENT EQUIPMENT EXCHANGE RATE EXPORT MARKETS EXTERNALITIES FDI FINANCIAL MARKETS FINANCIAL SUPPORT FIRMS FIXED COSTS FOREIGN AFFILIATES FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN MARKETS FOREIGN OWNERSHIP FOREIGN TECHNOLOGY FOREIGN-OWNED FIRMS GLOBAL ECONOMY GLOBAL MARKETS GLOBALISATION GLOBALIZATION HOST COUNTRIES HOST COUNTRY HOST ECONOMY HOST-COUNTRY HUMAN CAPITAL INCOME INDUSTRIAL COUNTRIES INDUSTRIAL DEVELOPMENT INDUSTRIAL ECONOMICS INFRASTRUCTURE DEVELOPMENT INNOVATION INTERNATIONAL BUSINESS INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL TRADE INVESTMENT POLICIES INVESTMENT PROMOTION INWARD FOREIGN DIRECT INVESTMENT LABOR DEMAND LABOR MARKET LABOR PRODUCTIVITY LABOUR LABOUR MARKETS LABOUR TURNOVER LEARNING LICENSE LICENSING MANUFACTURING MANUFACTURING ESTABLISHMENTS MANUFACTURING FIRMS MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING SECTOR MANUFACTURING SECTORS MARGINAL COSTS MARKET FAILURES MARKETING MULTINATIONAL MULTINATIONAL COMPANIES MULTINATIONAL CORPORATIONS MULTINATIONAL ENTERPRISE MULTINATIONAL ENTERPRISES MULTINATIONALS NEW TECHNOLOGY ORGANIZATIONAL INNOVATIONS PHYSICAL INFRASTRUCTURE POLITICAL ECONOMY PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PROPRIETARY KNOWLEDGE R&D RELIABILITY RENTS RESULT RESULTS SEARCH SKILLED LABOR SKILLED WORKERS SUPERVISION SUPPLIERS SUPPLY CHAIN TARGETS TAX INCENTIVES TAXATION TECHNICAL ASSISTANCE TECHNOLOGY DIFFUSION TECHNOLOGY GAP TECHNOLOGY GAPS TECHNOLOGY SPILLOVERS TECHNOLOGY TRANSFER TIME PERIOD TRANSMISSION USES VERTICAL LINKAGES WAGES Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources of induced spillovers from foreign direct investment. This article evaluates the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is at best mixed. The article explores the reasons and concludes with a review of policy aspects. 2013-12-19T21:07:15Z 2013-12-19T21:07:15Z 2004-09-01 http://documents.worldbank.org/curated/en/2004/09/17559758/much-ado-nothing-domestic-firms-really-benefit-foreign-direct-investment World Bank Research Observer doi:10.1093/wbro/lkh019 http://hdl.handle.net/10986/16412 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO INFORMATION
ACCOUNTING
BEST PRACTICE
CAPABILITY
CAPITAL FORMATION
COLLABORATION
COMMUNICATION NETWORKS
COMPETITIVE LABOR MARKETS
COMPETITORS
CORPORATE GOVERNANCE
CULTURAL CHANGE
DATA ANALYSIS
DEVELOPMENT ECONOMICS
DISTRIBUTION NETWORKS
DOMESTIC FIRM
DOMESTIC FIRMS
DOMESTIC INVESTMENT
DOMESTIC SUPPLIERS
DRIVERS
E-MAIL
E-MAIL ADDRESS
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC POLICY
ECONOMIC THEORY
EFFICIENCY BENEFITS
ELECTRONICS INDUSTRY
EMPLOYMENT
EQUIPMENT
EXCHANGE RATE
EXPORT MARKETS
EXTERNALITIES
FDI
FINANCIAL MARKETS
FINANCIAL SUPPORT
FIRMS
FIXED COSTS
FOREIGN AFFILIATES
FOREIGN DIRECT INVESTMENT
FOREIGN DIRECT INVESTMENTS
FOREIGN FIRM
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN MARKETS
FOREIGN OWNERSHIP
FOREIGN TECHNOLOGY
FOREIGN-OWNED FIRMS
GLOBAL ECONOMY
GLOBAL MARKETS
GLOBALISATION
GLOBALIZATION
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMY
HOST-COUNTRY
HUMAN CAPITAL
INCOME
INDUSTRIAL COUNTRIES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL ECONOMICS
INFRASTRUCTURE DEVELOPMENT
INNOVATION
INTERNATIONAL BUSINESS
INTERNATIONAL COMPETITION
INTERNATIONAL ECONOMICS
INTERNATIONAL INVESTMENT
INTERNATIONAL TRADE
INVESTMENT POLICIES
INVESTMENT PROMOTION
INWARD FOREIGN DIRECT INVESTMENT
LABOR DEMAND
LABOR MARKET
LABOR PRODUCTIVITY
LABOUR
LABOUR MARKETS
LABOUR TURNOVER
LEARNING
LICENSE
LICENSING
MANUFACTURING
MANUFACTURING ESTABLISHMENTS
MANUFACTURING FIRMS
MANUFACTURING INDUSTRIES
MANUFACTURING INDUSTRY
MANUFACTURING SECTOR
MANUFACTURING SECTORS
MARGINAL COSTS
MARKET FAILURES
MARKETING
MULTINATIONAL
MULTINATIONAL COMPANIES
MULTINATIONAL CORPORATIONS
MULTINATIONAL ENTERPRISE
MULTINATIONAL ENTERPRISES
MULTINATIONALS
NEW TECHNOLOGY
ORGANIZATIONAL INNOVATIONS
PHYSICAL INFRASTRUCTURE
POLITICAL ECONOMY
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROPRIETARY KNOWLEDGE
R&D
RELIABILITY
RENTS
RESULT
RESULTS
SEARCH
SKILLED LABOR
SKILLED WORKERS
SUPERVISION
SUPPLIERS
SUPPLY CHAIN
TARGETS
TAX INCENTIVES
TAXATION
TECHNICAL ASSISTANCE
TECHNOLOGY DIFFUSION
TECHNOLOGY GAP
TECHNOLOGY GAPS
TECHNOLOGY SPILLOVERS
TECHNOLOGY TRANSFER
TIME PERIOD
TRANSMISSION
USES
VERTICAL LINKAGES
WAGES
spellingShingle ACCESS TO INFORMATION
ACCOUNTING
BEST PRACTICE
CAPABILITY
CAPITAL FORMATION
COLLABORATION
COMMUNICATION NETWORKS
COMPETITIVE LABOR MARKETS
COMPETITORS
CORPORATE GOVERNANCE
CULTURAL CHANGE
DATA ANALYSIS
DEVELOPMENT ECONOMICS
DISTRIBUTION NETWORKS
DOMESTIC FIRM
DOMESTIC FIRMS
DOMESTIC INVESTMENT
DOMESTIC SUPPLIERS
DRIVERS
E-MAIL
E-MAIL ADDRESS
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC POLICY
ECONOMIC THEORY
EFFICIENCY BENEFITS
ELECTRONICS INDUSTRY
EMPLOYMENT
EQUIPMENT
EXCHANGE RATE
EXPORT MARKETS
EXTERNALITIES
FDI
FINANCIAL MARKETS
FINANCIAL SUPPORT
FIRMS
FIXED COSTS
FOREIGN AFFILIATES
FOREIGN DIRECT INVESTMENT
FOREIGN DIRECT INVESTMENTS
FOREIGN FIRM
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN MARKETS
FOREIGN OWNERSHIP
FOREIGN TECHNOLOGY
FOREIGN-OWNED FIRMS
GLOBAL ECONOMY
GLOBAL MARKETS
GLOBALISATION
GLOBALIZATION
HOST COUNTRIES
HOST COUNTRY
HOST ECONOMY
HOST-COUNTRY
HUMAN CAPITAL
INCOME
INDUSTRIAL COUNTRIES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL ECONOMICS
INFRASTRUCTURE DEVELOPMENT
INNOVATION
INTERNATIONAL BUSINESS
INTERNATIONAL COMPETITION
INTERNATIONAL ECONOMICS
INTERNATIONAL INVESTMENT
INTERNATIONAL TRADE
INVESTMENT POLICIES
INVESTMENT PROMOTION
INWARD FOREIGN DIRECT INVESTMENT
LABOR DEMAND
LABOR MARKET
LABOR PRODUCTIVITY
LABOUR
LABOUR MARKETS
LABOUR TURNOVER
LEARNING
LICENSE
LICENSING
MANUFACTURING
MANUFACTURING ESTABLISHMENTS
MANUFACTURING FIRMS
MANUFACTURING INDUSTRIES
MANUFACTURING INDUSTRY
MANUFACTURING SECTOR
MANUFACTURING SECTORS
MARGINAL COSTS
MARKET FAILURES
MARKETING
MULTINATIONAL
MULTINATIONAL COMPANIES
MULTINATIONAL CORPORATIONS
MULTINATIONAL ENTERPRISE
MULTINATIONAL ENTERPRISES
MULTINATIONALS
NEW TECHNOLOGY
ORGANIZATIONAL INNOVATIONS
PHYSICAL INFRASTRUCTURE
POLITICAL ECONOMY
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROPRIETARY KNOWLEDGE
R&D
RELIABILITY
RENTS
RESULT
RESULTS
SEARCH
SKILLED LABOR
SKILLED WORKERS
SUPERVISION
SUPPLIERS
SUPPLY CHAIN
TARGETS
TAX INCENTIVES
TAXATION
TECHNICAL ASSISTANCE
TECHNOLOGY DIFFUSION
TECHNOLOGY GAP
TECHNOLOGY GAPS
TECHNOLOGY SPILLOVERS
TECHNOLOGY TRANSFER
TIME PERIOD
TRANSMISSION
USES
VERTICAL LINKAGES
WAGES
Görg, Holger
Greenaway, David
Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
description Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources of induced spillovers from foreign direct investment. This article evaluates the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is at best mixed. The article explores the reasons and concludes with a review of policy aspects.
format Publications & Research :: Journal Article
author Görg, Holger
Greenaway, David
author_facet Görg, Holger
Greenaway, David
author_sort Görg, Holger
title Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
title_short Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
title_full Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
title_fullStr Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
title_full_unstemmed Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?
title_sort much ado about nothing? do domestic firms really benefit from foreign direct investment?
publisher World Bank
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/09/17559758/much-ado-nothing-domestic-firms-really-benefit-foreign-direct-investment
http://hdl.handle.net/10986/16412
_version_ 1764433520930848768