文档介绍：[petition,andProductivityinHost-^Thispapertestsforcertainbenefitsofforeigndirectinvestmentinthemanufacturingsectorsoftwoleadinghostcountries—^-oftheincrementalcostofpublicservicessuppliedtothem).Otherbenefits,conjecturalandelusivebutpossiblylarge,lieintheefiectsofdirectinvestmentonthevalueproductivityofre-sourcesownedbythehosteconomy(Macdougall,1960;Corden,1967;Caves,1971).Thehostnation'sprivatesectordoesnotbenefitdirectlybecausetheforeignsubsidiaryisefficient,-urwhenthemultinationalcorpora-tioncannotcaptureallquasi-rentsduetoitsproductiveactivities,ortotheremovalofdistortionsbythesubsidiary'.(1)petitioninthehost--country'sresourcesbyimprovingtheirallocation.(2)TechnicalefficiencyThesubsidiarymayinduceahigherleveloftechnicalor"Z-efiiciency"inhome-petewithit,supplyitorpurchasefromit.^StatisticalresearchforthispaperwassupportedbyNationalScienceFounda-tiongrantGS-,andtoseminarparticipantsatRutgers,ments.=Animportantlineoftheoreticalresearchidentifiesapossiblegaintothenationfrommonopolisticrestrictionoftheinfloworoutflowofforeigninvestment(Hamada,1966;Jones,1967).,however,]PETITIONANDPRODUCTIVITY177Thiscouldbeduetothemultinationalfirm'