TY  - JOUR
IS  - 3
N2  - 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 £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.
VL  - 89
Y1  - 2007/08//
A1  - Haskel, J.E.
A1  - Pereira, S.
A1  - Slaughter, M.
N1  - © 2007 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
SN  - 0034-6535
ID  - discovery18100
AV  - public
JF  - The Review of Economics and Statistics
EP  - 496
SP  - 482
UR  - http://dx.doi.org/10.1162/rest.89.3.482
TI  - Does inward foreign direct investment boost the productivity of domestic firms?
ER  -