Read the Following Journal Article: Haskel, J.E., Pereira, S.C. & Slaughter, M.J. (2007) ‘Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?’, Review of Economics & Statistics, 89 (3),

832 Words Dec 11th, 2012 4 Pages
Haskel, Pereira, and Slaugher (2002) focused the argument on two questions which is about:
• “Productivity spillovers from FDI to local firms”
• “How much should host countries should be willing to pay to attract FDI?”

The authors’ use a panel study of UK as an example and concluded if increasing 10% in foreign affiliate share of activity, the TFP in the industry’s domestic plants will increase by 0.5% as well. It shows that there’s a sturdy and positive spillover effect on inward FDI boosting the productivity in domestic plants.

Robert E. Lipsey and Fredrik Sjoholm, (2004) stated “case studies offer great flexibility.” The nature of technology transfer may be various from different examples, industries, and countries. “The length
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The increase in productivity and employment may affected due to improvement in economic conditions, such as changing in technology or increases in demand etc. So, if this assumption may not be valid at all, this will directly affecting the analyzing result.

Also, the statistical studies setting the time length over which may effects the measurement, such as measuring UK manufacturing plans between the period of 1973 and 1992. Using other period of time may get various results as well.

During the time researching, I found out that most of the case studies are using developed countries, such as United Kingdom and United States; it clearly shows that firms and countries within countries may be different in their ability benefiting from foreign-owned firms and the advanced technology and foreign owned firms.

I totally agree with what E. Lipsey R. E and Sjoholm F, (2004) concluded that if the differences between industry and country are so important which may affect the inward FDI on local countries, that means the search for universal relationships is useless and should back to the focus more on the type of industries and host countries. Identifying the characteristics of industries, courtiers or more specific examining the firms are essential valuables with the flexibility regarding the technology transfer types and timing, especially focus on the

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