During the last three decades a vast literature emerged on the empirical evidence of productivity spillovers from FDI. This is related to the fact that multinational firms own intangible assets which may be transmitted to domestic firms and thereby raise their productivity level. Results obtained so far are however mixed, and it does not seem possible to get a straightforward answer to whether this phenomenon occurs. This paper analyses the most extensive number of studies on the subject surveyed to date, by taking into account intra and inter FDI spillovers. We summarize the different channels for diffusion of FDI spillovers and the effects that may be expected in each case. Some paths for further research on the topic are also delineated, which take into consideration the fact that the existence of the phenomenon appears to depend on the sectoral characteristics and some conditioning factors.
intra-sectoral spillovers; inter-sectoral spillovers; empirical evidence; domestic firms; productivity
