Abstract:FDI-generated effects maybe direct when it impacts the host country economy as a whole or indirect when spillovers increase local producers’ productivity and competitiveness.Spillover effects arising from the establishing multinationals will benefit local producers through different channels or mechanisms. Key factors for the enactment of spillovers pervade literature, albeit an overlooked governmental role. We compare FDI spillovers in China and Brazil at both industry and firm levels, aiming at unveiling the influence of government in the configuration of spillover mechanisms and, consequently, in FDI impacts on local industries. Research comparing countries and based on case studies is likely to reveal the subtleties of FDI spillover while micro-level analysis allows a deeper and clearer investigation of the enabling mechanisms of the spillover process. Comparative historical analysis is the central mode of investigation, leading to a commitment to offering historically grounded explanations to important effects. The findings reveal the importance of governmental role in the achievement of positive FDI spillover effects and subsidize a preliminary causal analysis between government intervention and spillover mechanisms.

Authors: Afonso Fleury, Taotao Chen, Maria Tereza Fleury etal.,

The Academy of International Business 2015 Annual Meeting (India)