Article
Journal of International Business Studies (2009) 40, 1075–1094; doi:10.1057/jibs.2008.111
When and where does foreign direct investment generate positive spillovers? A meta-analysis
Klaus E Meyer1 and Evis Sinani2
- 1School of Management, University of Bath, Bath, UK
- 2Department of International Economics and Management, Copenhagen Business School, Frederiksberg, Denmark
Correspondence: KE Meyer, School of Management, University of Bath, Bath, BA2 7AY, UK. Tel.: +44(0) 1225 383695; Fax: +44(0) 1225 386861
Received 2 July 2007; Revised 3 July 2008; Accepted 22 July 2008; Published online 26 February 2009.
Abstract
Local firms may attract productivity spillovers from foreign investors, yet these vary with local firms' awareness, capability and motivation to react to foreign entry. In consequence, spillovers vary across countries at different levels of economic development. We apply competitive dynamics theory to analyze these contextual moderators of spillovers, and test hypotheses thus derived in a meta-analysis of the empirical literature on spillovers. Our analysis suggests a curvilinear relationship between spillovers and the host country's level of development in terms of income, institutional framework and human capital.
Keywords:
meta-analysis, MNEs and economic development, MNEs and economic growth, foreign direct investment, spillovers, institutions and international business
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