Does FDI Mode of Entry Matter for Economic Developments of a Host Country? The Case of Korea

2006 ◽  
Vol 5 (3) ◽  
pp. 171-185
Author(s):  
Seong-Bong Lee ◽  
Mikyung Yun
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Classification Scheme ◽  
Ongoing Debate ◽  
Firm Level ◽  
Mode Of Entry ◽  
Level Data ◽  
Firm Level Data ◽  
Economic Developments ◽  
Level Performance

There is an ongoing debate on whether benefits of foreign direct investment (FDI) differ depending on the modes of FDI entry. This paper examines this debate using firm-level data on FDI in Korea. The paper adopts a new, more accurate classification scheme than the current official classification system and finds that there is little difference in firm-level performance according to FDI mode of entry. The paper thus argues against any provision of preferential incentives based on modes of entry.

Determinants and effects of foreign direct investment: evidence from German firm-level data

2005 ◽  
Vol 20 (41) ◽  
pp. 52-110 ◽  
Author(s):  
C. M. Buch ◽  
J. Kleinert ◽  
A. Lipponer ◽  
F. Toubal ◽  
R. Baldwin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
German Firm ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

2004 ◽  
Vol 94 (3) ◽  
pp. 605-627 ◽  
Author(s):  
Beata Smarzynska Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Ownership ◽  
Foreign Investments ◽  
Firm Level ◽  
Productivity Spillovers ◽  
Level Data ◽  
Firm Level Data ◽  
Foreign Affiliates ◽  
Backward Linkages

Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The analysis, based on firm-level data from Lithuania, produces evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local suppliers in upstream sectors. The data indicate that spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.

The Differential Effects of Bilateral Tax Treaties

2014 ◽  
Vol 6 (2) ◽  
pp. 1-18 ◽  
Author(s):  
Bruce A. Blonigen ◽  
Lindsay Oldenski ◽  
Nicholas Sly
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Firms ◽  
Tax Treaties ◽  
Double Taxation ◽  
Firm Level ◽  
Differential Effects ◽  
Level Data ◽  
Firm Level Data ◽  
Positive Effect

Bilateral tax treaties (BTTs) are intended to promote foreign direct investment through double-taxation relief. Using BEA firm-level data, we find a positive effect of BTTs on FDI, which is larger for firms that use differentiated inputs. BTTs allow multinational firms to request assistance from treaty partners' governments if they have a grievance about how tax liabilities are determined. These provisions disproportionately benefit firms that use inputs for which an arm's-length price is difficult to observe, since allocation of earnings across countries is more complex. We find differential BTT effects for both sales by existing affiliates and entry of new affiliates. (JEL F23, H25, H87)

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