Literature Survey on Productivity Spillovers from Foreign Presence in a Host Country
Posted: 2 Oct 2017 Last revised: 19 Apr 2018
Date Written: September 29, 2017
This paper constitutes a review of theoretical and empirical literature on the subject of productivity spillovers from the presence of FDI. It features a review of definitional issues related to productivity externalities, manufacturing and foreign direct investment as well as their determinants. It presents some theoretical issues related to foreign direct investment and industrial productivity. In its third section a review of empirical literature is presented on the various industrial development experiences of developed countries, newly industrialised economies, transition economies as well as developing countries. The paper concludes with a presentation of gaps identified in the literature.
Keywords: Literature Review, Spillovers, FDI, Manufacturing, Productivity
JEL Classification: F21
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