Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study...

Using data on manufacturing plants operating in Canada for the period from 1981 to 1997, we estimate the effect of changes in the level of foreign control upon labour productivity in domestically-controlled plants. We distinguish between foreign control in own industry of domestically-controlled...

Foreign direct investment (FDI) is expected to generate external effects - usually termed FDI spillovers - for a host country, and these spillovers are thought to have consequences on the productivity of domestic firms. Despite this strong expectation, the empirical findings on FDI spillover are...

Knowledge flows tend to be highly geographically localized. This has lead researchers to try to find a means through which this localization effect can be minimized. Foreign Direct Investment has been proposed as a possible medium that enhances the ability of nations to exchange knowledge about...

One of the problems which sub-Saharan African (SSA) countries are confronted with is the low level of investment. Yet, the theory of capital tells us that it is impossible to envisage development without a considerable accumulation of capital. An important channel through which those countries...

This chapter examines how international flows of technological knowledge affect economic performance across industries and firms across different countries. Motivated by the large share of the world's technology investments made by firms that are active across country borders, we focus on...

Within the endogenous growth framework, we offer an explanation on how foreign direct investment (FDI) generates externalities in the form of technology transfer. We distinguish between the level and rate effects of spillovers on the productivity of domestic firms. A new insight gained from the...

This paper is the first part of a project that will examine the role of MNCs in the transfer of FMS technology. The paper is the result of a hypotheses generating phase conducted largely through a literature review. Multinational corporations (MNCs) are the principal agents of international...