1998
DOI: 10.1111/1467-6419.00056
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Abstract: This paper examines spillover effects of the activities of multinational firms. Such effects are most likely to be found in host countries, where the operations of foreign multinationals may influence local firms in the MNCs own industry as well as firms in other industries. However, there is no comprehensive evidence on the exact nature or magnitude of these effects, although it is suggested that host country spillovers vary systematically between countries and industries. In particular, the positive effects … Show more

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Cited by 1,345 publications
(456 citation statements)
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“…Generally, human capital is an important determinant of the distribution of foreign direct investment in developing countries (Noorbakhsh et al, 2001). 10 Demonstration effects are potentially very important for many countries and industries according to Blomström and Kokko (1998). De Backer and Sleuwagen (2003) present an analysis of Belgian manufacturing firms and show evidence of positive long-term demonstration effects.…”
mentioning
confidence: 99%
“…Generally, human capital is an important determinant of the distribution of foreign direct investment in developing countries (Noorbakhsh et al, 2001). 10 Demonstration effects are potentially very important for many countries and industries according to Blomström and Kokko (1998). De Backer and Sleuwagen (2003) present an analysis of Belgian manufacturing firms and show evidence of positive long-term demonstration effects.…”
mentioning
confidence: 99%
“…The long run growth rate of an economy, according to this model, depends on policy measures" (Seck, 2015, p.133). Blomstrom and Kokko (1998) identified FDI inflows as channels of international technology transfer and diffusion, they noted that the bulk of technology dissemination is still undertaken through internalized channels within the networks of MNCs, but externalized channels have become increasingly important, such as competitiveness. Furthermore, foreign affiliates are able to disseminate technology and skills to local firms, specifically via backward linkages.…”
Section: Literature Reviewmentioning
confidence: 99%
“…It is sometimes questioned whether FDI contributes to the broader aspects of economic growth as well as reinvestment of income in host economies. Besides, the presence of foreign firms can affect the efficiency of local industry (refer to as adverse spillover argument) (Blomstrom and Kokko, 1998). This argument tends to be more tenable when the multinational corporations are producing for the host country's market.…”
Section: The Review Of Related Literaturementioning
confidence: 99%