chapter  3
7 Pages

The interplay between foreign and domestic enterprises

Introduction There has been a rich emerging literature, both theoretical and empirical, on FDI productivity spillover channels since the 1990s. Empirical results show that the effectiveness of the different spillover channels also depends on various properties of the potential local recipients, such as their export propensity, research and development expenditure, geographic proximity to foreign firms, and employee training. The sources of FDI are also found to have an impact on spillover effects. This literature indicates that FDI productivity spillovers are complex phenomena, whose investigation requires detailed firm-level data.