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FDI, Technology Spillovers, Growth, and Income Inequality: A Selective Survey

Author

Listed:
  • Clark Don P.

    () (University of Tennessee)

  • Highfill Jannett

    () (Bradley University)

  • de Oliveira Campino Jonas

    () (Inter-American Development Bank)

  • Rehman Scheherazade S.

    () (The George Washington University)

Abstract

The present paper, restricting its attention to the empirical economics literature, attempts to gauge current thinking on the question of whether FDI causes economic growth. Since technological spillovers are a key determinant of long run economic growth, the survey begins with the firm level evidence on technological spillovers of FDI on domestic firms. The macro FDI and growth literature is covered next. Finally, we examine the effect of FDI on income inequality and/or employment, skills, or jobs. In many contexts policies that exacerbate income inequality come under special scrutiny even if they are welfare enhancing. Our major finding is that FDI is generally associated with positive technological spillovers, economic growth, and increasing income inequality. For all three of these results, however, there are significant counter examples in the literature which must be respected.

Suggested Citation

  • Clark Don P. & Highfill Jannett & de Oliveira Campino Jonas & Rehman Scheherazade S., 2011. "FDI, Technology Spillovers, Growth, and Income Inequality: A Selective Survey," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-44, July.
  • Handle: RePEc:bpj:glecon:v:11:y:2011:i:2:n:1
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    References listed on IDEAS

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    Cited by:

    1. Ghosh Madanmohan & Syntetos Peter & Wang Weimin, 2012. "Impact of FDI Restrictions on Inward FDI in OECD Countries," Global Economy Journal, De Gruyter, pages 1-26.
    2. Philipp Schautschick & Christine Greenhalgh, 2016. "Empirical studies of trade marks -- The existing economic literature," Economics of Innovation and New Technology, Taylor & Francis Journals, pages 358-390.
    3. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics Discussion Papers 2015-18, Kiel Institute for the World Economy (IfW).
    4. Meltem Ucal & Alfred Albert Haug & Mehmet Hüseyin Bilgin, 2016. "Income inequality and FDI: evidence with Turkish data," Applied Economics, Taylor & Francis Journals, vol. 48(11), pages 1030-1045, March.
    5. Christine Greenhalgh, 2016. "Science, technology, innovation and IP in India: new directions and prospects," Economic Change and Restructuring, Springer, pages 113-138.
    6. Das, Gouranga Gopal, 2015. "Why some countries are slow in acquiring new technologies? A model of trade-led diffusion and absorption," Journal of Policy Modeling, Elsevier, pages 65-91.
    7. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-35.
    8. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9803-0 is not listed on IDEAS
    9. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Trinh Le & Duncan McVicar & Rong Zhang, 2015. "‘High’-School: The Relationship between Early Marijuana Use and Educational Outcomes," The Economic Record, The Economic Society of Australia, pages 247-266.
    10. Noor Aini Khalifah & Salmah Mohd Salleh & Radziah Adam, 2015. "FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 142-160, May.
    11. Antonio Baez, 2014. "“A panel data analysis of FDI and informal labor markets”," IREA Working Papers 201404, University of Barcelona, Research Institute of Applied Economics, revised Feb 2014.
    12. repec:eee:ecanpo:v:55:y:2017:i:c:p:169-178 is not listed on IDEAS
    13. Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    14. Horgos Daniel, 2012. "International Outsourcing and Wage Rigidity," Global Economy Journal, De Gruyter, pages 1-28.

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