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Productivity Spillovers from Foreign Direct Investment in Developing Countries: A Meta‐Regression Analysis
Author(s) -
Wooster Rossitza B.,
Diebel David S.
Publication year - 2010
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2010.00579.x
Subject(s) - foreign direct investment , spillover effect , economics , meta regression , meta analysis , productivity , developing country , international economics , sample (material) , econometrics , monetary economics , macroeconomics , economic growth , medicine , chemistry , chromatography
This paper reviews the empirical literature on technology spillovers from foreign direct investment (FDI) in developing countries. Our meta‐analysis uses a sample of 32 studies to determine what aspects of study design and data characteristics explain the magnitude, significance, and direction of spillovers from FDI. Results suggest that spillover effects are more pronounced when studies measure the effect of FDI spillovers on output, and are more likely to be significant and positive for Asian countries. Results also highlight the possibility that the documented spillover effects from FDI in developing countries may be partly a product of model misspecification.