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FDI and Host Country Productivity: A Review

  • Argentino Pessoa

    ()

    (Faculdade de Economia, Universidade do Porto, Portugal)

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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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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  25. Girma, Sourafel & Wakelin, Katharine, 2001. "Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis," CEPR Discussion Papers 2995, C.E.P.R. Discussion Papers.
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