Intra-Industry Foreign Direct Investment

Intra-Industry Foreign Direct Investment

We use a new firm level data set which establishes the location, ownership, and activity of 650,000 multinational subsidiaries—close to a comprehensive picture of global multinational activity—. A number of patterns emerge from the data. Most foreign direct investment (FDI) occurs between rich countries. The share of vertical FDI (subsidiaries which provide inputs to their parent firms) is larg...

Intra- and Inter-industry Linkages in Foreign Direct Investment: Evidence from Japanese Investment in Europe

This paper studies the location choices of Japanese manufacturing and service firms in Europe between 1970 and 1995. We examine whether the presence of Japanese manufacturing (service) firms attracts other Japanese manufacturers (service providers), whether there exist interindustry linkages between the two sectors, and how such intraand interindustry agglomeration effects have evolved over tim...

Foreign Direct Investment, Competition and Industry Performance

This paper investigates the productivity effects of inward and outward foreign direct investment using industry and country level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that effects of FDI work through direct compositional effects as well as changing competition in the host country. Our results show that ...

Intra - Industry Trade , Foreign Direct Investment and the Reorientation of Eastern European Exports

Foreign Direct Investment and Intra-industry Spillovers: a Review of the Literature

Many governments offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits. This paper reviews the possible sources of such spillovers and the empirical evidence for their existence in developing, developed and transitional economies. Although theory can identify a range of possible spillover channels, empirical support is hard to find. In th...