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Host Country Benefits of Foreign Investment

35 Pages Posted: 30 Jul 2001  

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Date Written: February 1991

Abstract

This paper reviews the empirical evidence on the very different conclusions that can be drawn about productivity spillovers of foreign direct investment. It explains the concept of host country spillover benefits, describes the various forms these benefits can take, both within and between industries, and summarizes the evidence regarding the relative magnitudes of the various forms of spillovers. Moreover, the paper discusses host country policy measures which can accelerate both the BC affiliates' technology imports and the diffusion of their technology in the host economies.

Suggested Citation

Blomstrom, Magnus, Host Country Benefits of Foreign Investment (February 1991). NBER Working Paper No. w3615. Available at SSRN: https://ssrn.com/abstract=268197

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

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