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

@article{Javorcik2002DoesFD,
  title={Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages},
  author={Beata Smarzynska Javorcik},
  journal={Institutional \& Transition Economics eJournal},
  year={2002}
}
  • B. Javorcik
  • Published 2002
  • Economics
  • Institutional & Transition Economics eJournal
Many countries compete against one another in attracting foreign investors by offering ever more generous incentive packages and justifying their actions with the productivity gains that are expected to accrue to domestic producers from knowledge externalities generated by foreign affiliates. Despite this being hugely important to public policy choices, there is little conclusive evidence indicating that domestic firms benefit from foreign presence in their sector. It is possible, though, that… Expand
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