Open Access Te Herenga Waka-Victoria University of Wellington
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The impact of Inward FDI on Host country: Firm Performance in New Zealand

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posted on 2021-11-10, 08:00 authored by Zou, Yi

Foreign direct investment (FDI) and its multinationals' activities are well accepted as an engine of growth by which a host country can benefit from the injection of capital investment, technology and managerial knowhow to build up indigenous competitiveness through spillovers effects and productivity gap between foreign affiliates and local firms New Zealand is a small but developed economy. FDI plays an important role in the development and growth of local industry in New Zealand. In the extant literature, there was very few studies research on the performance gap in New Zealand context. This paper investigates the effect of inward FDI on host country theoretically, focusing on the spillover effects and firm performance. Statistical analysis tests the possibility of performance gap's existence in New Zealand firms. In addition, separated attention is provided to service industry to differ from manufacturing industries that always be testified in many empirical studies. The findings provide evidence that foreign owned firms have superior performance advantages over local firms. But more research needs to be conducted for more conclusive results.


Copyright Date


Date of Award



Te Herenga Waka—Victoria University of Wellington

Rights License

Author Retains Copyright

Degree Discipline

International Business

Degree Grantor

Te Herenga Waka—Victoria University of Wellington

Degree Level


Degree Name

Master of Commerce and Administration

Victoria University of Wellington Item Type

Awarded Research Masters Thesis



Victoria University of Wellington School

School of Marketing and International Business


Scott-Kennel, Joanna