GEP Research Paper 01/37
Foreign Direct Investment and Intra-Industry Spillovers: A Review of the Literature
H. Görg and D. Greenaway
This paper is forthcoming in World Bank Research Observer (new title: Much ado about nothing? Do domestic firms really benefit from foreign direct investment?)
Abstract
Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper reviews the possible sources of such spillovers and the empirical evidence for their existence in developing, developed and transitional economies. Although theory can identify a range of possible spillover channels, empirical support is hard to find. In the light of this, the paper concludes with a review of policy aspects.
Issued in February 2002.
This paper is available in PDF format .