This dissertation explores, empirically, the role of foreign direct investment (FDI) in enhancing industrial performance and development across developing and transitional countries in six regions, using detailed plant level panel data. The empirical framework is based on existing theoretical predictions on the effects of foreign multinational operations on host country productivity, innovation, and employment opportunities which are detailed in Chapter 2. Chapter 3 examines localized productivity spillovers from foreign multinational corporations (MNCs) to domestic plants in fifty-eight countries and explores two potential channels, namely, intermediate input sharing and labor mobility, through which localized spillovers are realized. In Chapter 4, knowledge spillover channels are further explored to analyze how MNCs can play a key role in enhancing innovative activities of indigenous plants in fifty-seven nations. Chapter 5 considers the economic and social aspects of FDI in fifty-eight developing countries, by examining its effect on female employment across plants and industries of varying skill and knowledge intensity. The analyses in Chapter 3 and Chapter 4 yield significant evidence of localized FDI spillovers. The empirical results also suggest that host country activities of MNCs enhance productivity and innovation among indigenous plants due to greater likelihood of local intermediate input sharing and labor mobility between foreign and domestic enterprises, but only under certain conditions pertaining to the interaction of foreign and domestic plants with local factor markets. Results from Chapter 3 and 4 further indicate significant effects of product and factor market competition from MNCs on indigenous plant productivity and innovation. Finally, the analysis in Chapter 5 shows heterogeneous effects of FDI on female employment depending on the knowledge and skill intensity of plants and industries. An Instrumental Variables (IV) approach is used as an identification strategy in the chapters of this dissertation.
|Advisor:||Chen, Maggie Xiaoyang|
|Commitee:||Bastos, Paulo, Moore, Michael O., Suranovic, Steven M., Williams, Benjamin|
|School:||The George Washington University|
|School Location:||United States -- District of Columbia|
|Source:||DAI-A 76/01(E), Dissertation Abstracts International|
|Subjects:||Commerce-Business, Finance, Labor economics, Economic theory|
|Keywords:||Foreign direct investment, Foreign direct investment in developing countries, International knowledge transfer, Multinational corporations, Productivity spillover|
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