Home- and Host-Country Effects of Foreign Direct Investment

Robert E. Lipsey

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International Business and FDI Global trade and economics Economic Growth and Productivity

Abstract

This chapter presents a detailed analysis and appraisal of the empirical findings concerning the home- and host-country effects of foreign direct investment (FDI). It first summarizes the empirical evidence concerning the effects of FDI on home-country exports and on home-country factor demand, and then discusses wages, productivity, exports, and the introduction of new industries on the host-country side. A commentary is also included at the end of the chapter.

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References

1954Economic Development with Unlimited Supplies of Labour 1998How does foreign direct investment affect economic growth?1999Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela 2003FDI and economic growth: the role of local financial markets 2000The Global competitiveness report, 1999 1998Multinational Corporations and Spillovers 2002Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages 1993An Empirical Assessment of the Proximity-Concentration Tradeoff between Multinational Sales and Trade

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