When Does FDI Have Positive Spillovers?
Author: Yuriy Gorodnichenko
Publisher:
Published: 2007
Total Pages: 53
ISBN-13:
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When Does FDI Have Positive Spillovers?
Author: Yuriy Gorodnichenko
Publisher:
Published: 2013
Total Pages: 42
ISBN-13:
DOWNLOAD EBOOKWe use rich firm-level data and national input-output tables from 17 countries over the 2002-2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). We document that backward linkages have a consistently positive effect on productivity of domestic firms while horizontal and forward linkages show no consistent effect. We also examine how the strength of spillovers varies by sector, FDI source, business environment (corruption, red tape, level of development), firm's distance to the technological frontier, education of workers, and other firm- and country-specific characteristics.
Productivity Convergence
Author: Edward N. Wolff
Publisher: Cambridge University Press
Published: 2013-12-16
Total Pages: 537
ISBN-13: 1107651212
DOWNLOAD EBOOKA vast new literature on the sources of economic growth has now accumulated. This book critically reviews the most significant works in this field and summarizes what is known today about the sources of economic growth. The first part discusses the most important theoretical models that have been used in modern growth theory as well as methodological issues in productivity measurement. The second part examines the long-term record on productivity among Organization for Economic Co-operation and Development (OECD) countries, considers the sources of growth among them with particular attention to the role of education, investigates convergence at the industry level among them, and examines the productivity slowdown of the 1970s. The third part looks at the sources of growth among non-OECD countries. Each chapter emphasizes the factors that appear to be most important in explaining growth performance.
When Does FDI Have Positive Spillovers?
Author: Yuriy Gorodnichenko
Publisher:
Published: 2007
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKFDI Spillovers, Financial Markets, and Economic Development
Author: Laura Alfaro
Publisher: International Monetary Fund
Published: 2003-09-01
Total Pages: 34
ISBN-13: 1451859481
DOWNLOAD EBOOKThis paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
Understanding FDI Spillovers in the Presence of GVCs
Author: Fahad Khan
Publisher:
Published: 2021
Total Pages: 46
ISBN-13:
DOWNLOAD EBOOKDoes a global value chain framework provide additional insights into the question of whether foreign direct investment is beneficial to host countries? The literature has found mixed results on whether foreign direct investment provides positive spillovers over and above mere financing. But the studies have focused on one country, or studies with an international focus tend to abstract from intersectoral linkages. By examining this question in the context of global value chains, this paper provides a much better understanding of the association as well as general validity. It harmonizes three major panel data sets: 1) the Multi-Regional Input-Output table for international input-output linkages, 2) the FDI Markets reports for greenfield foreign direct investment, and 3) the World Bank Enterprise Surveys for firm performance measures. The paper produces a rich panel data set from 2011 to 2017. The findings show that foreign direct investment has a positive effect on labor productivity in sectors and firms within those sectors. Moreover, global value chain participation plays a key role in shaping the foreign direct investment effects. Sectors with lower global value chain participation benefit more from foreign direct investment: doubling the foreign direct investment in those sectors results in an 8 percent productivity gain. The positive effect seems to be due to the increased competition created by foreign direct investment. Foreign direct investment spillovers also take place through domestic and foreign backward linkages, which means that foreign direct investment also has positive inter-sector and cross-border spillovers.
Firm Heterogeneity and FDI-Related Productivity Spillovers
Author: Sajid Anwar
Publisher:
Published: 2018
Total Pages: 17
ISBN-13:
DOWNLOAD EBOOKA number of existing empirical studies have attempted to estimate the foreign direct investment-related productivity spillover effects to domestic firms in host economies using various methodologies and measures of FDI. This literature has produced mixed results. While some studies found positive spillovers, others reported zero or even negative spillovers. In this paper, using a model of firm heterogeneity, we provide a rigorous theoretical justification for the mixed findings. We show that FDI-related productivity spillover effects can be decomposed into a direct and an indirect effect. If the direct effect is positive then relatively less capable domestic firms that were not able to survive in the industry (before the arrival of foreign firms) can enter the industry, which decreases the average (expected) productivity of the industry. If this indirect effect is sufficiently strong then the overall impact of FDI on productivity of domestic firms can be zero or negative. Hence, irrespective of the type of FDI (vertical or horizontal) and control variables included in empirical models, one may find negative or zero spillover effects.
When Does FDI Have Positive Spillovers?
Author: Yuriy Gorodnichenko
Publisher:
Published: 2014
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKExport Catalysts in Low-income Countries
Author: Yung W. Rhee
Publisher:
Published: 1990
Total Pages: 90
ISBN-13:
DOWNLOAD EBOOKSignificant research is needed in the design and implementation of outward-looking development strategies, recognizing that the supply response must come from individual firms. However, in studying industrial development policy issues, one often become over-influenced by a preconceived model, leaving out the most critical aspect, i.e. real world experience in the intricacies of the industrial development process in low-income countries. The approach taken here gives the highest priority to finding the real stories on the development process at the firm or factory level. In all the cases reviewed, the most critical ingredient for successful entry in the international markets was nearly always the presence of foreign and/or domestic catalysts. The catalyst model of development that emerges from the analysis of eleven export success stories aims at providing feasible and practical answers to questions about workable development strategies for low-income countries. To that end, the catalyst model of development is a model for initiating and transmitting outward-oriented development and for sequencing realistic policy reforms, starting from "equal footing" export incentives, in parallel with increasing industrial competence gained through world market competition.
Made in Africa
Author: Carol Newman
Publisher: Brookings Institution Press
Published: 2016-02-23
Total Pages: 315
ISBN-13: 0815728166
DOWNLOAD EBOOKWhy is there so little industry in Africa? Over the past forty years, industry has moved from the developed to the developing world, yet Africa’s share of global manufacturing has fallen from about 3 percent in 1970 to less than 2 percent in 2014. Industry is important to low-income countries. It is good for economic growth, job creation, and poverty reduction. Made in Africa: Learning to Compete in Industry outlines a new strategy to help African industry compete in global markets. This book draws on case studies and econometric and qualitative research from Africa and emerging Asia to understand what drives firm-level competitiveness in low-income countries. The results show that while traditional concerns such as infrastructure, skills, and the regulatory environment are important, they alone will not be sufficient for Africa to industrialize. The book also addresses how industrialization strategies will need to adapt to the region’s growing resource abundance.
