Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect...

Foreign direct investment (FDI) is an integral part of national development strategy throughout the developing world. However, while traditionally strategies have focused on the role of inward flows only, today, outward FDI is used on a larger scale and more deliberately to access markets and...

This Paper suggests that the use of investment incentives focusing exclusively on foreign firms - although motivated in some cases from a theoretical point of view - is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for...

This paper examines the relationship between regional economic integration and FDI in North America, where two RIAs have been established over the past decade: a bilateral free trade agreement between Canada and the U.S. (CUSTA) and a trilateral agreement (NAFTA) incorporating Mexico as well....

The existence of spillover efficiency benefits to host country economies from inward foreign direct investment(FDI) are well documented in the literature, particularly for economically developed host economies. The determinantsof the size and scope of the spillover benefits have also been...

Stressing that the liberalisation of international trade and investment may lead to a geographical concentration of economic activity, this paper discusses the scope for FDI as an instrument of regional policy aimed at offsetting the centripetal forces unleashed by liberalisation. Focusing on...

Foreign direct investment may promote economic development by helping to improve productivity growth and exports in the multinationals'host countries, the authors conclude, after reviewing the empirical evidence. But the exact relationship between foreign multinational corporations and their...

The existence of spillover efficiency benefits to host country economies from inward foreign direct investment (FDI) are well documented in the literature, particularly for economically developed host economies. The determinants of the size and scope of the spillover benefits have also been...

This paper examines intra-industry spillovers from FDI in Uruguayan manufacturing plants in 1988, to determine whether differences in the technology gap between locally- owned plants and foreign affiliates have any impact on the relation between local productivity and foreign presence. We find a...

This paper reviews and synthesizes the available literature focusing on the determinants of efficiency spillovers from inward FDI. In order to do so, we outline a theoretical framework for understanding the underlying 'supply' and 'demand' forces determining the scope and magnitude of FDI...