Working Paper: NBER ID: w3615
Authors: Magnus Blomström
Abstract: This paper reviews the empirical evidence on the very different conclusions that can be drawn about productivity spillovers of foreign direct investment. It explains the concept of host country spillover benefits, describes the various forms these benefits can take, both within and between industries, and summarizes the evidence regarding the relative magnitudes of the various forms of spillovers. Moreover, the paper discusses host country policy measures which can accelerate both the BC affiliates' technology imports and the diffusion of their technology in the host economies.
Keywords: Foreign Direct Investment; Technology Transfer; Productivity Spillovers
JEL Codes: F21; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| MNCs (F23) | productivity of local firms (D22) |
| training provided by MNCs (M53) | productivity of local firms (D22) |
| MNC technology transfer (F23) | speed of technology adoption by local firms (O14) |