eprintid: 18100
rev_number: 25
eprint_status: archive
userid: 600
dir: disk0/00/01/81/00
datestamp: 2009-11-20 18:17:50
lastmod: 2015-07-19 03:02:41
status_changed: 2009-11-20 18:17:50
type: article
metadata_visibility: show
item_issues_count: 0
creators_name: Haskel, J.E.
creators_name: Pereira, S.
creators_name: Slaughter, M.
title: Does inward foreign direct investment boost the productivity of domestic firms?
ispublished: pub
subjects: 12000
divisions: F24
note: © 2007 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
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 £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.
date: 2007-08
official_url: http://dx.doi.org/10.1162/rest.89.3.482
vfaculties: VSHS
oa_status: green
language: eng
primo: open
primo_central: open_green
doi: 10.1162/rest.89.3.482
full_text_status: public
publication: The Review of Economics and Statistics
volume: 89
number: 3
pagerange: 482-496
refereed: TRUE
issn: 0034-6535
citation:        Haskel, J.E.;    Pereira, S.;    Slaughter, M.;      (2007)    Does inward foreign direct investment boost the productivity of domestic firms?                   The Review of Economics and Statistics , 89  (3)   pp. 482-496.    10.1162/rest.89.3.482 <https://doi.org/10.1162/rest.89.3.482>.       Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/18100/1/18100.pdf