3.The impact of FDI on industry performance
Abstract
This paper investigates the productivity e®ects of inward and outward for- eign direct investment using industry and country level data for 17 OECD
countriesThe paper relates to a large recent literature on productivity
spillovers from inward FDI, however, we also consider the relationship between
productivity and outward FDI in the same estimation. Our results show that
there are, on average, productivity bene¯ts from inward FDI, although we can
identify a number of countries which, on aggregate, do not appear to bene¯t
in terms of productivity. On the other hand, a country's stock of outward
FDI is, on average, negatively related to productivity. However, again there
is substantial heterogeneity in the e®ect across OECD countries.