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Are there dynamic externalities from direct foreign investment? Evidence for Morocco (English)

Many developing countries now actively solicit foreign investment, offering income tax holidays, import duty exemptions, and subsidies to foreign firms. One reason for subsidizing these firms is the positive externalities as foreign technology is transferred from foreign to domestic firms. This paper employs a unique firm-level dataset to test for such dynamic externalities in the Moroccan manufacturing sector. We find no evidence of positive externalities...
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Haddad,Mona E.; Harrison,Ann E..

Are there dynamic externalities from direct foreign investment? Evidence for Morocco (English). Industry and Energy Department working paper. Industry series paper ; no. 48 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/482911468757500259

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