The principal argument for subsidizing foreign investment, especially in developing andtransition economies, is the assumed spillover of technology to local firms. Yet researchersreport mixed results on spillovers. To examine the phenomenon in a systematic way, wecollected 3,626 estimates from...

Does FDI affect productivity growth, innovation, and knowledge sourcing activities ofdomestic firms? This study employs detailed firm-level panel-data from Estonia’smanufacturing sector to investigate different channels through which FDI can affectdomestic firms. I use instrumental variables...

We review a large body of literature dealing with the effects of Foreign Direct Investment(FDI) on economies during their transformation from a command economic systemtoward a market system. We report the results of a meta-analysis based on the literatureon externalities from FDI. The studies on...

Strong cyclical dynamics, together with an easing of macroeconomic policies in the United States and elsewhere, have boosted large parts of the global economy, into the initial phase of a recovery in 2002. Nonetheless, the global recovery is fragile, because investment spending is insufficient...

"During the 1990s, foreign direct investment in producer service sectors in Latin America was massive. Such investment may increase the quality of services, reduce their cost, and offer opportunities for knowledge spillovers to downstream users of the services. This paper examines the effects of...