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Determinants and effects of direct foreign investment in Cote d'Ivoire, Morocco, and Venezuela

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  • Harrison, Ann

Abstract

Despite the voluminous literature on direct foreign investment in the 1960s and 1970s, the empirical evidence on spillovers from foreign sources of equity investment remains slim. This chapter draws on new data sources for Cote d'lvoire, Morocco, and Venezuela to explore two related questions. To what extent do joint ventures or wholly owned for¬eign subsidiaries exhibit higher levels of productivity than their domestic counterparts? Does technology spill over from these foreign entrants to domestically owned firms? The research reported here is the first to exploit panel data at the level of individual firms, which allows a more detailed comparison of foreign and domestic firms than was previously possible. The behavior of foreign and domestic firms can be compared by sector, controlling for firm-specific attributes such as size. The panel nature of the data also allows the analysis to go beyond the cross-sectional studies of the past, which compared partial measures of productivity (such as labor productivity) across sectors. The availability of data for several countries permits exploration of the extent to which the impact of foreign investment is a general or a country-specific phenomenon.

Suggested Citation

  • Harrison, Ann, 1995. "Determinants and effects of direct foreign investment in Cote d'Ivoire, Morocco, and Venezuela," MPRA Paper 36594, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36594
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    File URL: https://mpra.ub.uni-muenchen.de/36594/1/MPRA_paper_36594.pdf
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    References listed on IDEAS

    as
    1. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    2. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    3. Janet Currie & Ann Harrison, 2022. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 2, pages 15-42, World Scientific Publishing Co. Pte. Ltd..
    4. Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, vol. 36(1-2), pages 53-73, February.
    5. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
    6. Harrison, Ann, 1994. "Multinationals in economic development: the benefits of FDI," MPRA Paper 36270, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 895-922.
    3. Nasha Ananchotikul, 2008. "Does Foreign Direct Investment Really Improve Corporate Governance? Evidence from Thailand," Working Papers 2008-09, Monetary Policy Group, Bank of Thailand.
    4. Dupasquier, Chantal & Osakwe, Patrick N., 2006. "Foreign direct investment in Africa: Performance, challenges, and responsibilities," Journal of Asian Economics, Elsevier, vol. 17(2), pages 241-260, April.
    5. Jože P. Damijan & Andreja Jaklič & Matija Rojec, 2006. "Do External Knowledge Spillovers Induce Firms’ Innovations? Evidence from Slovenia," Palgrave Macmillan Books, in: Ana Teresa Tavares & Aurora Teixeira (ed.), Multinationals, Clusters and Innovation, chapter 3, pages 27-47, Palgrave Macmillan.
    6. Dalila Nicet-Chenaf & Eric Rougier, 2009. "FDI and growth: a new look at a still puzzling issue," Post-Print hal-00798473, HAL.
    7. Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
    8. Damijan, Jože P. & Kostevc, Crt, 2007. "Knowledge Transfer, Innovation and Growth," Papers DYNREG06, Economic and Social Research Institute (ESRI).

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    More about this item

    Keywords

    direct foreign investment; cote d'Ivoire; morocco; Venezuela;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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