This paper analyses the impact of foreign direct investment (FDI) on the development of local firms. We focus on two … likely of FDI: a competition effect which deters entry of domestic firms and positive market externalities which foster the … local firms' entry, this initial effect has been outpaced by positive externalities making the overall impact of FDI largely …

This paper analyses the impact of foreign direct investment (FDI) on the development of local firms. We focus on two … likely effects of FDI: a competition effect which deters entry of domestic firms and positive market externalities which … impact of FDI largely positive in this country …