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Productivity Effects of FDI Inflows: A Literature Review

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Author Info
Hugo Rojas-Romagosa ()

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Abstract

Foreign Direct Investment (FDI) flows have increased substantially in the past two decades. These developments have motivated the appearance of a large number of empirical papers that test the expected benefits that FDI inflows are assumed to bring to the host countries.We survey the recent theoretical and empirical literature, but restrict our attention to the productivity changes that are induced by increased FDI inflows. We review both the aggregate productivity effects, as well as the spillover effects of FDI on local firms.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Memoranda with number 170.

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Date of creation: Dec 2006
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Handle: RePEc:cpb:memodm:170

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Related research
Keywords: FDI; productivity growth;

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arjan Lejour & Hugo Rojas-Romagosa & Gerard Verweij, 2007. "Opening Services Markets within Europe: Modelling Foreign Establishments in a CGE Framework," CPB Discussion Papers 80, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  2. Arjan Lejour & Hugo Rojas-Romagosa, 2006. "Foreign Direct Investment in Applied General Equilibrium Models," CPB Memoranda 169, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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