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

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.

Publication DOI: https://doi.org/10.1057/ejdr.2011.50
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Aston Business School
Additional Information: 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
Uncontrolled Keywords: spillovers,production functions,estimation,Geography, Planning and Development,Development
Full Text Link: http://www.palg ... jdr201150a.html
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2012-02
Authors: Driffield, Nigel ( 0000-0003-1056-3117)
Jindra, Björn

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