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Editor Pick – Productivity Effects of FDI Inflows: A Literature Review

Productivity Effects of FDI Inflows: A Literature Review

Multinational enterprises are, in general, more productive than domestic firms. Thus, FDI inflows directly increase aggregate productivity through a composition effect in the host economy. However, developed economies are more likely to reap the benefits from technological spillovers than emerging markets due to their lower absorption capacity.

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Edwin G. Dolan is an economist and educator with a Ph.D. from Yale University. Early in his career, he was a member of the economics faculty at Dartmouth College, the University of Chicago, and George Mason University. From 1990 to 2001, he taught in Moscow, Russia, where he and his wife founded the American Institute of Business and Economics (AIBEc), an independent, not-for-profit MBA program. Since 2001, he has taught at several universities in Europe, including Central European University in Budapest, the University of Economics in Prague, and the Stockholm School of Economics in Riga, where he has an ongoing annual visiting appointment. During breaks in his teaching career, he worked in Washington, D.C. as an economist for the Antitrust Division of the Department of Justice and as a regulatory analyst for the Interstate Commerce Commission, and later served a stint in Almaty as an adviser to the National Bank of Kazakhstan. When not lecturing abroad, he makes his home in San Juan Islands, Washington.

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