EIJS Working Papers Series
Robert Lipsey and Fredrik Sjöholm
HOST COUNTRY IMPACTS OF INWARD FDI: WHY SUCH DIFFERENT ANSWERS?
Abstract: A substantial literature has grown up around the issue of
how inward direct investment affects host countries. On almost every aspect
of this question, there seems to be a wide range of empirical results in
academic literature, and little sign of convergence. It is our purpose here
to try to understand why contradictory results seem to be found by
different investigators. Is it that the statistical techniques are
different? Or are the countries they examine different? Or are they asking
different questions under the same labels of wages, productivity, or
spillovers? We try to answer these questions in two ways. One is to review
the individual studies themselves to clarify the questions asked and the
data used. The other is to survey studies on data for Indonesia, which
cover a long period and are detailed and accessible, to test the
implications of different definitions and methods.
Keywords: FDI; Wages; Productivity; Spillovers; (follow links to similar papers)
JEL-Codes: F23; J31; O12; (follow links to similar papers)
34 pages, May 17, 2004
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- This paper is published as:
Lipsey, Robert and Fredrik Sjöholm, (2005), 'HOST COUNTRY IMPACTS OF INWARD FDI: WHY SUCH DIFFERENT ANSWERS?' in Moran, Theodore, Edward Graham and Magnus Blomström (eds.) Does Foreign Direct Investment Promote Development, chapter 2, pages 23-44, Intstitute for International Economics.
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