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FDI and Host Country Productivity: A Review

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  • Argentino Pessoa

    ()
    (Faculdade de Economia, Universidade do Porto, Portugal)

Abstract

This paper reviews arguments and empirical findings on positive effects of FDI on host country firms. With the exception of the only unambiguous result of microeconometric studies, which is the superior productivity of foreign firms, the main conclusion extracted from empirical studies is the diversity of results. This diversity suggests that FDI will have different effects depending on the ‘technological congruence’ and ‘social capability’ of the host economy, as well as the familiarity of indigenous firms to products and technology of a given multinational corporation.

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File URL: http://www.fep.up.pt/investigacao/workingpapers/07.10.16_wp251_Pessoa.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 251.

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Length: 39 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:por:fepwps:251

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Related research

Keywords: Economic Growth; Foreign Direct Investment; Multinational Corporations; Spillovers; Technology Transfer;

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References

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Cited by:
  1. Paula Neto & António Brandão & António Cerqueira, 2008. "The Impact of FDI, Cross Border Mergers and Acquisitions and Greenfield Investments on Economic Growth," FEP Working Papers 291, Universidade do Porto, Faculdade de Economia do Porto.

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