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Do domestic firms benefit from foreign direct investment? Evidence from panel data (Английский)

Many developing countries now actively solicit foreign investment, offering firms subsidies, tax holidays, and exemptions from import duties. One justification for subsidizing these firms is the so-called spillover of technology from foreign to domestic firms. Using panel data -- following more than 4,000 Venezuelan firms from 1975 through 1989 -- The authors explore two aspects of the effect of foreign direct investment. First, they examine the relative...
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