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Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The World Bank Research Observer Oxford University Press

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

The World Bank Research Observer , Volume 23 (2) – Mar 19, 2008

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References (110)

Publisher
Oxford University Press
Copyright
© Published by Oxford University Press.
Subject
Symposium on FDI
ISSN
0257-3032
eISSN
1564-6971
DOI
10.1093/wbro/lkn003
Publisher site
See Article on Publisher Site

Abstract

Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies.

Journal

The World Bank Research ObserverOxford University Press

Published: Mar 19, 2008

Keywords: JEL codes F23 O33

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