Journal ArticleDOI
FDI and Economic Growth: The Role of Local Financial Markets*
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In this article, the authors examine the various links among foreign direct investment (FDI), financial markets, and economic growth, and explore whether countries with better financial systems can exploit FDI more efficiently.About:
This article is published in Journal of International Economics.The article was published on 2004-10-01. It has received 1747 citations till now. The article focuses on the topics: Capital market & Financial market.read more
Citations
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Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
Brian J. Aitken,Ann Harrison +1 more
TL;DR: This paper found that foreign equity participation is positively correlated with plant productivity (the "own-plant" effect), but this relationship is only robust for small enterprises and that the gains from foreign investment appear to be entirely captured by joint ventures.
Journal ArticleDOI
Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability
TL;DR: In this paper, the impact of natural resources, market size, government policies, political instability and the quality of the host country's institutions on FDI has been studied and shown that countries that are small or lack natural resources can attract FDI by improving their institutions and policy environment.
Journal ArticleDOI
The Effect of Financial Development on Convergence: Theory and Evidence
TL;DR: In this paper, the authors introduce imperfect creditor protection in a multi-country version of Schumpeterian growth theory with technology transfer, and show that the likelihood of converging to the U.S. growth rate increases with financial development.
Journal ArticleDOI
Remittances, financial development, and growth
Paola Giuliano,Marta Ruiz-Arranz +1 more
TL;DR: This article found that remittances boost growth in countries with less developed financial systems by providing an alternative way to finance investment and helping overcome liquidity constraints, and also provided evidence that there could be an investment channel trough which remittance can promote growth especially when the financial sector does not meet the credit needs of the population.
ReportDOI
Financial Globalization: A Reappraisal
TL;DR: The authors argue that the indirect effects of financial globalization on financial sector development, institutions, governance, and macroeconomic stability are likely to be far more important than any direct impact via capital accumulation or portfolio diversification.
References
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Journal ArticleDOI
A Contribution to the Empirics of Economic Growth
TL;DR: The authors examined whether the Solow growth model is consistent with the international variation in the standard of living, and they showed that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Posted ContentDOI
Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
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Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.