FDI motives and host country productivity effects of US MNEs

John Cantwell, Roger Smeets

Research output: Chapter in Book/Report/Conference proceedingChapter

6 Scopus citations


The cumulative ambiguity in empirical results regarding the productivity-enhancing effects of inward Foreign Direct Investment (FDI) or spillovers has led scholars to start investigating such effects in more detail (Smeets, 2008). Some studies try to disentangle the knowledge diffusion channels through which such effects allegedly take place (Javorcik, 2004; Görg and Strobl, 2005), while others have considered the moderating role of factors such as the absorptive capacity of local firms (Girma, 2005; Girma and Görg, 2007) or the geography of inter-firm patterns of location (Barrios et al., 2006; Nicolini and Resmini, 2007). A more recent stream of literature has approached the issue by acknowledging the fact that multinationals (MNEs) and their foreign subsidiaries are not homogeneous, and as such may generate different (productivity) effects on host-country firms (Feinberg and Keane, 2005). In this vein, some authors have investigated the influence of differences in MNE ownership structures (Javorcik and Spatareanu, 2008), parent nationality (Buckley et al., 2007a and 2007b) and market orientation (Girma et al., 2008; Smeets and Wei, 2010).

Original languageEnglish (US)
Title of host publicationInnovation and Creativity
Subtitle of host publicationPillars of the Future Global Economy
PublisherEdward Elgar Publishing Ltd.
Number of pages23
ISBN (Electronic)9781781004333
ISBN (Print)9781781004326
StatePublished - Jan 1 2013

All Science Journal Classification (ASJC) codes

  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)


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