Challenging the production function approach to assess the developmental effects of FDI

Nigel Driffield, Björn Jindra

Research output: Contribution to journalArticle

Abstract

From a theoretical point of view, it is traditionally assumed that foreign firms possess a centrally accumulated firm-specific technological advantage over domestic firms (see, for example, Findlay, 1978; Dunning, 1979). Given a sufficient level of absorptive capacity and human capital, domestic firms in host economies are able to benefit from various externalities stimulated by the presence of foreign firms.
Original languageEnglish
Pages (from-to)32-37
Number of pages6
JournalEuropean Journal of Development Research
Volume24
Issue number1
DOIs
Publication statusPublished - Feb 2012

Bibliographical note

This is a post-peer-review, pre-copyedit version of an article published in European journal of developmental research. The definitive publisher-authenticated version Driffield, N., & Jindra, B. (2012). Challenging the production function approach to assess the developmental effects of FDI. European journal of developmental research, 24(1), 32-37 is available online at: http://www.palgrave-journals.com/ejdr/journal/v24/n1/full/ejdr201150a.html

Keywords

  • spillovers
  • production functions
  • estimation

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