@article{discovery18100,
          number = {3},
            year = {2007},
           month = {August},
         journal = {The Review of Economics and Statistics},
          volume = {89},
            note = {{\copyright} 2007 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology},
           title = {Does inward foreign direct investment boost the productivity of domestic firms?},
           pages = {482--496},
        abstract = {Are there productivity spillovers from FDI to domestic firms, and, if so, how much should host countries be willing to pay to attract FDI? To examine these questions, we use a plant-level panel covering U.K. manufacturing from 1973 through 1992. Consistent with spillovers, we estimate a robust and significantly positive correlation between a domestic plant's TFP and the foreign-affiliate share of activity in that plant's industry. Typical estimates suggest that a 10-percentage-point increase in foreign presence in a U.K. industry raises the TFP of that industry's domestic plants by about 0.5\%. We also use these estimates to calculate the per-job value of these spillovers at about {\pounds}2,400 in 2000 prices (\$4,300). These calculated values appear to be less than per-job incentives governments have granted in recent high-profile cases, in some cases several times less.},
          author = {Haskel, J. E. and Pereira, S. and Slaughter, M.},
             url = {http://dx.doi.org/10.1162/rest.89.3.482},
            issn = {0034-6535}
}