scispace - formally typeset
Journal ArticleDOI

Foreign Direct Investment and Growth in EP and is Countries

V. N. Balasubramanyam, +2 more
- 01 Jan 1996 - 
- Vol. 106, Iss: 434, pp 92-105
TLDR
This article examined the role of foreign direct investment in the growth process in the context of developing countries characterized by differing trade policy regimes, and found that the beneficial effect of FDI, in terms of enhanced economic growth, is stronger in those countries that pursue all outwardly oriented trade policy than it is in countries adopting an inwardly oriented policy.
Abstract
This paper examines, within a new growth theory framework, the role that foreign direct investment plays in the growth process in the context of developing countries characterized by differing trade policy regimes. The paper tests, using cross-section data relating to a sample of forty-six developing countries, the hypothesis advanced by Jagdish Bhagwati, according to which the beneficial effect of foreign direct investment, in terms of enhanced economic growth, is stronger in those countries that pursue all outwardly oriented trade policy than it is in those countries adopting an inwardly oriented policy. Copyright 1996 by Royal Economic Society.

read more

Citations
More filters
Posted Content

Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?

TL;DR: In this paper, a comprehensive evaluation of the empirical evidence on productivity, wages and exports spillovers in developing, developed and transitional economies is presented. But, although theory can identify a range of possible spillover channels, robust empirical support for positive spillovers is hard to find.
Journal ArticleDOI

Does Foreign Direct Investment Accelerate Economic Growth

TL;DR: This article used new statistical techniques and two new databases to reassess the relationship between,,,,, and,,, and, and found that the relation between, and, and,
Journal ArticleDOI

Much ado about nothing? do domestic firms really benefit from foreign direct investment?

TL;DR: In this article, the authors evaluate the empirical evidence on productivity, wage, and export spillovers in developing, developed, and transition economies and conclude that robust empirical support for positive spillovers is at best mixed.
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

Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship

TL;DR: In this paper, the authors investigated whether foreign direct investment (FDI) affects economic growth based on a panel of data for 84 countries over the period 1970-99, and applied both single equation and simultaneous equation system techniques to examine this relationship.
References
More filters

The mechanics of economic development

Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI

Increasing Returns and Long-Run Growth

TL;DR: In this paper, the authors present a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity, which is essentially a competitive equilibrium model with endogenous technological change.
Journal ArticleDOI

On the mechanics of economic development

TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
Journal ArticleDOI

Technical change and the aggregate production function

TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.
Posted Content

Why doesn't capital flow from rich to poor countries?

TL;DR: In this paper, a rotary spinning ring is provided with upper and lower outwardly tapered body portions, each of which has its surface provided with inclined grooves, a ring holder for receiving the rotary body therein, a sliding flange positioned between the holder and the body and having some play therein, and dust caps mounted on the upper-and lower portions of the rotating body.
Related Papers (5)
Trending Questions (1)
How does foreign direct investment (FDI) impact the level of trade between countries and contribute to economic growth?

Foreign direct investment (FDI) enhances economic growth more in outwardly oriented trade policy countries compared to inwardly oriented ones, as per the paper's findings on developing countries.