What question did this study set out to answer?

To evaluate the mechanisms, magnitude, and determinants of spillover effects generated by multinational corporation activities in both host and home nations.

July 1, 1998Journal of Economic Surveys

Multinational Corporations and Spillovers

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Authors

MBMagnus BlomströmMercer (Czechia)AKAri KokkoCopenhagen Business School

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Implication

Economic review reveals heterogeneous spillover effects across host and home economies, indicating that foreign investment benefits depend heavily on domestic market capabilities.

Key Points

To evaluate the mechanisms, magnitude, and determinants of spillover effects generated by multinational corporation activities in both host and home nations.
Synthesized empirical literature analyzing intra-industry and inter-industry productivity spillovers from foreign direct investment.
Evaluated the mediating roles of local technological capability, market competition, and firm-level functional specialization across borders.
Host-country productivity spillovers vary systematically across regions and industries, with positive gains increasing alongside local technical capability and competitive intensity.
Home-country spillovers are generally positive but remain difficult to isolate, with net impacts depending directly on which functional activities multinational firms concentrate domestically.

Cite This Study

Blomström et al. (1998) studied this question.

synapsesocial.com/papers/69d73d93c74376700bf30fb3 https://doi.org/10.1111/1467-6419.00056

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Implication

Economic review reveals heterogeneous spillover effects across host and home economies, indicating that foreign investment benefits depend heavily on domestic market capabilities.

Multinational Corporations and Spillovers

Discussion

Member takes

Implication

Key Points

Cite This Study

Multinational Corporations and Spillovers

Discussion

Member takes

Implication

Key Points

Cite This Study

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