Editor Pick – 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.
One Response to “Editor Pick – Productivity Effects of FDI Inflows: A Literature Review”
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