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Cited by 3,621

The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.

Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela

Open access
Aitken, Brian J, Harrison, Ann E·1999·American Economic Review

Abstract

Governments often promote inward foreign investment to encourage technology “spillovers” from foreign to domestic firms. Using panel data on Venezuelan plants, we find that foreign equity participation is positively correlated with plant productivity (the “own-plant” effect), but this relationship is only robust for small enterprises. We then test for spillovers from joint ventures to plants with no foreign investment. Foreign investment negatively affects the productivity of domestically owned plants. The net impact of foreign investment, taking into account these two offsetting effects, is quite small. The gains from foreign investment appear to be entirely captured by joint ventures. (JEL F2, O1, O3).

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Metadata

Authors
Aitken, B. J., & Harrison, A. E.
Venue
American Economic Review
Published
1999-06-01
Volume
89
Issue
3
Pages
605-618
ISSN
0002-8282 (ISSN-L)
OpenAlex
W2081631040
Cited by
3,621
References
1
FWCI
207.32
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela. https://app.cochat.ai/papers/10.1257/aer.89.3.605
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Aitken, B. J., & Harrison, A. E. (1999). Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela. American Economic Review. https://doi.org/10.1257/aer.89.3.605

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