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| Author: | Barrios, S. Görg, H. Strobl, E. |
| Title: | Foreign direct investment, competition and industrial development in the host country |
| Journal: | European Economic Review
2005 : OCT, VOL. 49:7, p. 1761-1784 |
| Index terms: | direct investment foreign investment industrial development market entry |
| Language: | eng |
| Abstract: | This article studies the effect of foreign direct investment (FDI) on the development of domestic companies. The authors focus on two effects: competition and positive market externalities. The results suggest that while competition may initially deter local companiesÂ’ market entry, the effect of positive externalities may more than offset the initial effect of the competition thus making the overall effect of FDI positive for the domestic industry. |
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