The aim of this paper is to analyse the impact of Foreign Direct Investment (FDI) on firm productivity using an establishment-level panel of Spanish manufacturing industry that spans the period 1990-1994. The key question concerns the elements that enable domestic firms to capture the positive spillovers associated with the presence of foreign firms. We use Research and Development (R&D) expend...

Using data for the period 1983-2002, this study examines the relationship between inward foreign direct investment (FDI) and export performance in China. The results indicate that FDI promotes exports by foreign as well as domestically-owned firms, and that this effect is strongest for labour-intensive industries. This impact, however, does not depend on the country of origin of the investor. T...

This paper examines the horizontal and vertical export spillovers of foreign direct investment (FDI) on China’s manufacturing domestic firms by using firm-level census data over the period of 2000–03. Based on a Heckman two-step procedure combining first differencing and instrumental variable regression techniques, we find that FDI has had a positive impact on the export value of domestic firms...

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand by two modes, or by a combination thereof: it can export its product, or it can create productive capacity via Foreign Direct Investment. The advantage of FDI is that it allows lower marginal cost than exports. The disadvantage is that FDI is irreversible and, hence, entails the ris...

We examine the impacts of agglomeration economies on the location of Foreign Direct Investment (FDI) in Vietnam. Using a large dataset that provides detailed information about individual firms, we investigate the location choices by 920 newly created foreign firms in 2009 in about 125 different 4-digit industries. The estimates of the conditional logit model show that agglomeration benefits mot...

Does the party of government influence the amount and type of inward foreign investment? The results of a number of correlational studies provide inconsistent evidence. However none of these studies for any level of government or any jurisdiction have used methods that allow them to speak to causal effects. The partisan differences of economic policy in the US are pronounced. Democratic adminis...

Since the development of the eclectic paradigm by Dunning (1977, 1988, 1993), many studies have investigated different forms of location advantages that attract foreign direct investment (FDI). In this study, we consider accounting standards as a component of the institutional infrastructure of a location and hypothesize that the convergence of domestic and International Financial Reporting Sta...

This study examines the dynamic relationship between foreign direct investment (FDI) and total factor productivity having controlled for other channels of external openness: exports and imports in four ASEAN countries: Indonesia, Malaysia, Singapore, and Thailand. We employ the panel data analysis PDA (fixed effect and dynamic panel models) as well as the panel cointegration and Granger causali...

Over the last two decades, the use of external outsourcing has become an important strategic issue, with increasing recognition of the benefits that effective outsourcing and international production strategies can provide. In the never-ending quest for greater efficiency and cost savings, many companies have decided to source parts and components from low-cost suppliers globally, and in many i...

Over the past forty-five years, bilateral investment treaties (BITs) have become the most important international legal mechanism for the encouragement and governance of foreign direct investment. Their proliferation over the past two decades in particular has been phenomenal. These intergovernmental treaties typically grant extensive rights to foreign investors, including protection of contrac...