Foreign Direct Investment and Knowledge Diffusion in Poor Locations : Evidence from Ethiopia ∗

@inproceedings{Abebe2017ForeignDI,
  title={Foreign Direct Investment and Knowledge Diffusion in Poor Locations : Evidence from Ethiopia ∗},
  author={Girum Abebe and Mark McMillan and Michel Serafinelli},
  year={2017}
}
We quantify foreign direct investment (FDI) spillovers by comparing changes in total factor productivity (TFP) among domestic plants in districts that attracted a large greenfield foreign plant and districts where greenfield FDI was licensed but not yet operational. Over the four years starting with the year of the opening, TFP of domestic plants is 8 percent higher in treated districts. Using an alternative strategy exploiting the assignment of land for FDI by the Ethiopian Government, we… CONTINUE READING

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