Görg, HolgerGreenaway, David2013-12-192013-12-192004-09-01World Bank Research Observerdoi:10.1093/wbro/lkh019https://hdl.handle.net/10986/16412Governments the world over offer significant inducements to attract investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. There are several possible sources of induced spillovers from foreign direct investment. This article evaluates the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies. Although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is at best mixed. The article explores the reasons and concludes with a review of policy aspects.en-USCC BY-NC-ND 3.0 IGOACCESS TO INFORMATIONACCOUNTINGBEST PRACTICECAPABILITYCAPITAL FORMATIONCOLLABORATIONCOMMUNICATION NETWORKSCOMPETITIVE LABOR MARKETSCOMPETITORSCORPORATE GOVERNANCECULTURAL CHANGEDATA ANALYSISDEVELOPMENT ECONOMICSDISTRIBUTION NETWORKSDOMESTIC FIRMDOMESTIC FIRMSDOMESTIC INVESTMENTDOMESTIC SUPPLIERSDRIVERSE-MAILE-MAIL ADDRESSECONOMIC ANALYSISECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICYECONOMIC THEORYEFFICIENCY BENEFITSELECTRONICS INDUSTRYEMPLOYMENTEQUIPMENTEXCHANGE RATEEXPORT MARKETSEXTERNALITIESFDIFINANCIAL MARKETSFINANCIAL SUPPORTFIRMSFIXED COSTSFOREIGN AFFILIATESFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN FIRMFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN MARKETSFOREIGN OWNERSHIPFOREIGN TECHNOLOGYFOREIGN-OWNED FIRMSGLOBAL ECONOMYGLOBAL MARKETSGLOBALISATIONGLOBALIZATIONHOST COUNTRIESHOST COUNTRYHOST ECONOMYHOST-COUNTRYHUMAN CAPITALINCOMEINDUSTRIAL COUNTRIESINDUSTRIAL DEVELOPMENTINDUSTRIAL ECONOMICSINFRASTRUCTURE DEVELOPMENTINNOVATIONINTERNATIONAL BUSINESSINTERNATIONAL COMPETITIONINTERNATIONAL ECONOMICSINTERNATIONAL INVESTMENTINTERNATIONAL TRADEINVESTMENT POLICIESINVESTMENT PROMOTIONINWARD FOREIGN DIRECT INVESTMENTLABOR DEMANDLABOR MARKETLABOR PRODUCTIVITYLABOURLABOUR MARKETSLABOUR TURNOVERLEARNINGLICENSELICENSINGMANUFACTURINGMANUFACTURING ESTABLISHMENTSMANUFACTURING FIRMSMANUFACTURING INDUSTRIESMANUFACTURING INDUSTRYMANUFACTURING SECTORMANUFACTURING SECTORSMARGINAL COSTSMARKET FAILURESMARKETINGMULTINATIONALMULTINATIONAL COMPANIESMULTINATIONAL CORPORATIONSMULTINATIONAL ENTERPRISEMULTINATIONAL ENTERPRISESMULTINATIONALSNEW TECHNOLOGYORGANIZATIONAL INNOVATIONSPHYSICAL INFRASTRUCTUREPOLITICAL ECONOMYPRODUCTION PROCESSESPRODUCTIVITYPRODUCTIVITY GROWTHPROPRIETARY KNOWLEDGER&DRELIABILITYRENTSRESULTRESULTSSEARCHSKILLED LABORSKILLED WORKERSSUPERVISIONSUPPLIERSSUPPLY CHAINTARGETSTAX INCENTIVESTAXATIONTECHNICAL ASSISTANCETECHNOLOGY DIFFUSIONTECHNOLOGY GAPTECHNOLOGY GAPSTECHNOLOGY SPILLOVERSTECHNOLOGY TRANSFERTIME PERIODTRANSMISSIONUSESVERTICAL LINKAGESWAGESWorld Bank10.1596/16412