Learning or Leaning : Persistent and Transitory Growth Spillovers from FDI

Davies, Ronald B. ; Lamla, Michael J. ; Schiffbauer, Marc

World Bank, Washington, DC

关键词: TAX INCENTIVES;    GROWTH RATES;    EMPLOYMENT;    CREDIT MARKETS;    EXTERNAL;   

DOI  :  10.1596/1813-9450-7591
RP-ID  :  WPS7591

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using firm-level data for Jordan, thepaper estimates the extent to which growth spillovers fromforeign direct investment (FDI) to local firms stem frompersistent learning externalities (i.e., they endure evenafter foreign investment leaves as knowledge has beentransferred to local firms) or from transitory effects(e.g., demand increases that evaporate followingdisinvestment). The paper find that spillovers have asignificant transitory nature, with employment and capitalgrowth declining when FDI falls, particularly in downstreamindustries supplied by locals. This suggests that ifFDI-attracting policies are intended to promote sustainablegrowth, it may be more effective to attract and retain FDIvia long-term structural policies, for instance, through lowcorporate tax rates rather than temporary tax holidays orthrough policies that strengthen the domestic absorptivecapacity and linkages between foreign and local firms.