We review a large body of literature dealing with the effects of Foreign Direct Investment(FDI) on economies during their transformation from a command economic systemtoward a market system. We report the results of a meta-analysis based on the literatureon externalities from FDI. The studies on...

The principal argument for subsidizing foreign investment, especially in developing andtransition economies, is the assumed spillover of technology to local firms. Yet researchersreport mixed results on spillovers. To examine the phenomenon in a systematic way, wecollected 3,626 estimates from...

Does FDI affect productivity growth, innovation, and knowledge sourcing activities ofdomestic firms? This study employs detailed firm-level panel-data from Estonia’smanufacturing sector to investigate different channels through which FDI can affectdomestic firms. I use instrumental variables...

This paper pursues three aims. First, we provide a review of current theoretical advanceswhich pertain to the relationship between trade, FDI and labor markets. We do so under thefollowing (not mutually exclusive) headings: (1) slicing-up the value added chain and the turnto a task-based...

This paper analyses to what extent working conditions in foreign-owned firms differ fromthose in their domestic counterparts. It makes three main contributions. First, we replicate theconsensus in the empirical literature by applying a standardised methodology to firm-leveldata for three...

How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data...

It is commonly alleged that foreign direct investment (FDI) in the service sector haspositive consequences for the domestic labor market. This paper shows that this widelyaccepted view does not generally hold...

We consider the plant location decision of a multinational, which has the option to invest in a more or aless technologically advanced country. We find that in the absence of exporting by the local firms, themultinational will invest in the country lagging behind, unless the firms in that...

In this paper an index of financial competitiveness is calculated that corresponds to themarket-to-book ratio of inward FDI stocks. For a panel of five advanced economies from1980 to 2006 it is shown that price competitiveness, stable inflation rates and registeredpatents have a positive impact...