Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis

Nigel Driffield; James H. Love

doi:10.1057/palgrave.jibs.8400268

Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis

Nigel Driffield, James H. Love^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

We develop a taxonomy that relates foreign direct investment (FDI) motivation (technology- and cost-based) to its anticipated effects on host countries domestic productivity. We then empirically examine the effects of FDI into the United Kingdom on domestic productivity, and find that different types of FDI have markedly different productivity spillover effects, which are consistent with the conceptual analysis. The UK gains substantially only from inward FDI motivated by a strong technology-based ownership advantage. As theory predicts, inward FDI motivated by technology-sourcing considerations leads to no productivity spillovers.

Original language	English
Pages (from-to)	460-473
Number of pages	14
Journal	Journal of International Business Studies
Volume	38
DOIs	https://doi.org/10.1057/palgrave.jibs.8400268
Publication status	Published - 22 May 2007

Bibliographical note

This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version Driffield, Nigel L. and Love, James H. (2007) Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis. Journal of International Business Studies, 38 (2). pp. 460-473. ISSN 0047-2506 is available online at: http://www.palgrave-journals.com/jibs/journal/v38/n3/abs/8400268a.html

Keywords

FDI motivation
productivity spillovers
technology

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10.1057/palgrave.jibs.8400268

Linking FDI motivation and host economy productivity effects
This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version Driffield, Nigel L. and Love, James H. (2007) Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis. Journal of International Business Studies, 38 (2). pp. 460-473. ISSN 0047-2506 is available online at: http://www.palgrave-journals.com/jibs/journal/v38/n3/abs/8400268a.html
Accepted author manuscript, 107 KB

http://www.palgrave-journals.com/jibs/journal/v38/n3/abs/8400268a.html

Cite this

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title = "Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis",

abstract = "We develop a taxonomy that relates foreign direct investment (FDI) motivation (technology- and cost-based) to its anticipated effects on host countries domestic productivity. We then empirically examine the effects of FDI into the United Kingdom on domestic productivity, and find that different types of FDI have markedly different productivity spillover effects, which are consistent with the conceptual analysis. The UK gains substantially only from inward FDI motivated by a strong technology-based ownership advantage. As theory predicts, inward FDI motivated by technology-sourcing considerations leads to no productivity spillovers.",

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Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis

Abstract

Bibliographical note

Keywords

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