Multinational enterprises (MNEs) attract a lot of bad press worldwide, sometimes with good cause: think of MNEs not paying their taxes, or possible threats to national security. Easily overlooked, however, are the extensive benefits that foreign direct investment (FDI) can bring to a host economy. This includes ‘spillovers’ from foreign firms and domestic multinational eneterprises that boost the productivity and innovation of local firms. This research project explores the mechanisms by which FDI impacts the productivity and innovation in domestic firms and, in turn, more inclusive economic growth.
Contact Professor Sara McGaughey for more information.