Empirical evidence that FDI generates positive effects
for host countries is, however, surprisingly ambiguous
at both micro and macro levels. Hanson’s (2001) survey
of the literature finds only weak evidence that FDI generates
positive spillovers for host countries, and Go¨rg
and Greenaway’s (2004) review of the micro-level analysis
literature on spillovers from foreign to domestically
owned firms reports the effects to be mostly negative.
Lipsey’s (2002) survey of macro-level empirical research
finds no consistent relation between the size of inward
FDI stocks or flows and gross domestic product (GDP) or growth, and Blomstro¨m and Kokko’s (2003) review
of the literature leads them to conclude that spillovers
are not automatic because of the degree to which local
conditions influence domestic firms’ adoption of foreign
technologies and skills.