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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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    1. Holger Görg & David Greenaway, 2004. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Bank Research Observer, World Bank Group, vol. 19(2), pages 171-197.
    2. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters,in: Globalization And International Trade Policies, chapter 17, pages 623-687 World Scientific Publishing Co. Pte. Ltd..
    4. 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..
    5. Roger Smeets, 2008. "Collecting the Pieces of the FDI Knowledge Spillovers Puzzle," World Bank Research Observer, World Bank Group, vol. 23(2), pages 107-138, March.
    6. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    7. 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.
    8. repec:pal:jintbs:v:50:y:2019:i:6:d:10.1057_s41267-019-00248-2 is not listed on IDEAS
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