Journal Article

Can Survey Evidence Shed Light on Spillovers from Foreign Direct Investment?

Beata S. Javorcik

in The World Bank Research Observer

Published on behalf of World Bank

Volume 23, issue 2, pages 139-159
Published in print January 2008 | ISSN: 0257-3032
Published online June 2008 | e-ISSN: 1564-6971 | DOI: http://dx.doi.org/10.1093/wbro/lkn006
Can Survey Evidence Shed Light on Spillovers from Foreign Direct Investment?

More Like This

Show all results sharing these subjects:

  • Technological Change; Research and Development
  • International Factor Movements and International Business
  • Development Planning and Policy

GO

Show Summary Details

Preview

Although some economists remain skeptical of the existence of positive externalities associated with foreign direct investment (FDI), many countries spend large sums attracting foreign investors in the hope of benefiting from knowledge spillovers. Data collected through enterprise surveys conducted in the Czech Republic and Latvia suggest that the entry of multinationals affects domestic enterprises in the same industry or in upstream or downstream sectors through multiple channels. Some of these channels represent true knowledge spillovers while others have positive or negative effects on domestic producers in other ways. The relative magnitudes of these channels depend on host country conditions and the type of FDI inflows, which explains the seemingly inconsistent findings of the literature. The focus of the debate should shift from attempting to generalize about whether or not FDI leads to productivity spillovers to determining under what conditions it can do so.

Keywords: F21; F23; O24; O33

Journal Article.  6826 words.  Illustrated.

Subjects: Technological Change; Research and Development ; International Factor Movements and International Business ; Development Planning and Policy

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.