We explore the effect of foreign direct investment on economic growth in developing countries, distinguishing between mergers and acquisitions ("M&As") and "greenfield" investment. A simple model captures the key difference between the two types of FDI: unlike greenfield investment, M&As partly...

Recent research on productivity spillovers from affiliates of multinational corporations in developing and emerging economies finds that backward linkages from affiliates of foreign-owned firms to local suppliers constitute the main channel transmitting productivity spillovers. This finding has...

In this study, we use a cross-sectionally correlated and timewise autoregressive model and panel data for the period 1966-2000 to investigate human development as a measure of host country absorptive capacity in 30 developed and developing countries. The results suggest that technology diffusion...