Barrios, Salvador; Görg, Holger; Strobl, Eric - 2007
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 …