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Foreign Direct Investment as a Catalyst for Industrial Development.

Abstract:

How does an FDI project affect local firms in the same industry? Competition in the" product and factor markets tends to reduce profits of local firms, but linkage effects to supplier" industries may reduce input costs and raise profits. This paper develops an analytical framework" to assess these effects. Circumstances in which FDI is complementary to local industry are" established, and it is shown how FDI may lead to the establishment of local industrial sectors. " These sectors may grow t...

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Publisher:
National Bureau of Economic Research
Volume:
6241
Series:
NBER Working Papers
Host title:
NBER Working Papers
Place of publication:
Inc, NBER Working Papers
Publication date:
1997-01-01
Paper number:
6241
Language:
English
UUID:
uuid:87e0af10-8b94-446b-8684-68c4d4b45e0a
Local pid:
oai:economics.ouls.ox.ac.uk:12017
Deposit date:
2011-08-16

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