Merlevede, Bruno; Schoors, Koen J. L.; Spatareanu, Mariana - 2010
This study analyzes the dynamic effect of FDI on local firms’ productivity by relaxing the standard implicit assumption … short run negative effect on the productivity of local competitors, which is more than offset by a longer run positive … through backward linkages. The entry of majority foreign owned firms also improves the productivity of local suppliers, but …