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The effect of technology spillovers is widely considered as one of the main channels through which domestic firms benefit from FDI (Foreign Direct Investments), and plays an important role in economic development of host countries. FDI is expected to generate technology spillovers to indigenous...
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productivity of domestic firms. A new insight gained from the theory is that the level and rate effects of spillovers can go in … in FDI at the four-digit industry level lowers the short-term productivity level but raises the long-term rate of … productivity growth of domestic firms in the same industry. We also find that spillovers through backward and forward linkages …
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productivity gains for domestic firms. The size of FDI …
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