Does Foreign Direct Investment Increase the Productivity of Domestic Firms ? In Search of Spillovers through Backward Linkages

  title={Does Foreign Direct Investment Increase the Productivity of Domestic Firms ? In Search of Spillovers through Backward Linkages},
  author={Beata K. Smarzynska},
  • Beata K. Smarzynska
  • Published 2002
Many countries aim to attract foreign direct investment (FDI) by offering ever more generous incentive packages and justifying their actions with the expected knowledge externalities to be generated by foreign affiliates. Despite being hugely important to public policy, there is little conclusive evidence to support this claim. This study examines firm-level data from Lithuania in an effort to further our understanding of this issue. The empirical results are consistent with positive… CONTINUE READING
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