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Making investment work for productivity-enhancing, inclusive and sustainable development: What we know, and what we would still like to know

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  • Görg, Holger

Abstract

Goal 8 of the UN Sustainable Development Goals (SDGs) calls for promoting "sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all". One driver that may help to achieve this goal is foreign direct investment (FDI). It has the potential to foster productivity growth and generate quality employment, and also - though many globalization critics may disagree - to help moving towards more socially and environmentally sustainable business practices (e.g., Görg, Hanley, Hoffmann, Seric, 2015). This short note reviews briefly what we do know from recent work using large scale firm level datasets about the potential benefits or costs of foreign direct investment as regards these aspects. It then sets out what else we would want to know, and how to go about collecting this knowledge. Based on this, some policy conclusions are offered.

Suggested Citation

  • Görg, Holger, 2018. "Making investment work for productivity-enhancing, inclusive and sustainable development: What we know, and what we would still like to know," KCG Policy Papers 3, Kiel Centre for Globalization (KCG).
    • Handle: RePEc:zbw:kcgpps:3
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    References listed on IDEAS

    as
    1. Sourafel Girma & Yundan Gong & Holger Görg & Sandra Lancheros, 2016. "Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 12, pages 227-239, World Scientific Publishing Co. Pte. Ltd..
    2. Beata S. Javorcik & Mariana Spatareanu, 2009. "Tough Love: Do Czech Suppliers Learn from their Relationships with Multinationals?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 811-833, December.
    3. Holger Görg & David Greenaway, 2016. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 9, pages 163-189, World Scientific Publishing Co. Pte. Ltd..
    4. Heyman, Fredrik & Sjoholm, Fredrik & Tingvall, Patrik Gustavsson, 2007. "Is there really a foreign ownership wage premium? Evidence from matched employer-employee data," Journal of International Economics, Elsevier, vol. 73(2), pages 355-376, November.
    5. Sourafel Girma & Holger Görg, 2016. "Evaluating the foreign ownership wage premium using a difference-in-differences matching approach," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 2, pages 17-32, World Scientific Publishing Co. Pte. Ltd..
    6. Matthew A. Cole & Robert J. R. Elliott & Per G. Fredriksson, 2006. "Endogenous Pollution Havens: Does FDI Influence Environmental Regulations?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 157-178, March.
    7. Roger Smeets, 2008. "Collecting the Pieces of the FDI Knowledge Spillovers Puzzle," The World Bank Research Observer, World Bank, vol. 23(2), pages 107-138, March.
    8. 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..
    9. Beata S. Javorcik & Mariana Spatareanu, 2009. "Tough Love: Do Czech Suppliers Learn from their Relationships with Multinationals?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 811-833, December.
    10. Brian Aitken & Ann Harrison & Robert E. Lipsey, 2022. "Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 4, pages 61-87, World Scientific Publishing Co. Pte. Ltd..
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    13. Olivier N. Godart & Holger Görg, 2016. "Suppliers of multinationals and the forced linkage effect: Evidence from firm level data," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 15, pages 277-288, World Scientific Publishing Co. Pte. Ltd..
    14. Salvador Barrios & Holger Görg & Eric Strobl, 2016. "Spillovers through backward linkages from multinationals: Measurement matters!," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 11, pages 213-226, World Scientific Publishing Co. Pte. Ltd..
    15. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    16. Sourafel Girma & Holger Görg & Erasmus Kersting, 2019. "Which boats are lifted by a foreign tide? Direct and indirect wage effects of foreign ownership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(6), pages 923-947, August.
    17. Beata S. Javorcik, 2015. "Does FDI Bring Good Jobs to Host Countries?," The World Bank Research Observer, World Bank, vol. 30(1), pages 74-94.
    18. Holger Görg & Adnan Seric, 2016. "Linkages with Multinationals and Domestic Firm Performance: The Role of Assistance for Local Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 605-624, September.
    19. Dardati, Evangelina & Saygili, Meryem, 2012. "Multinationals and environmental regulation: are foreign firms harmful?," Environment and Development Economics, Cambridge University Press, vol. 17(2), pages 163-186, April.
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