The impact of foreign direct investment (FDI) on host economies has been the domain of an extensive empirical literature. These studies have become notorious for their widely divergent findings, especially when longitudinal firm-level data are used to measure intraindustry effects of multinational presence on the productivity of domestic firms. This has led to a number of corrections in the modelling of productivity spillovers . However, extant literature has largely remained stuck to the externality framework, with no explicit criticism of the underlying conceptual and analytical issues. I will support the more radical view that we should go beyond the mere concept of externality. In fact,externalities by definition entail the idea of ‘not-paid-for’ advantages/disadvantages accruing to one or more actors from somebody else’s activity.

Effects, not externalities

ZANFEI, ANTONELLO
2012-01-01

Abstract

The impact of foreign direct investment (FDI) on host economies has been the domain of an extensive empirical literature. These studies have become notorious for their widely divergent findings, especially when longitudinal firm-level data are used to measure intraindustry effects of multinational presence on the productivity of domestic firms. This has led to a number of corrections in the modelling of productivity spillovers . However, extant literature has largely remained stuck to the externality framework, with no explicit criticism of the underlying conceptual and analytical issues. I will support the more radical view that we should go beyond the mere concept of externality. In fact,externalities by definition entail the idea of ‘not-paid-for’ advantages/disadvantages accruing to one or more actors from somebody else’s activity.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11576/2543175
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