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Foreign direct investment - growth nexus: a review of the recent literature
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In this paper, the authors reviewed the literature dealing with the effects of FDI on growth and concluded that free trade zones, trade regime, the human capital base in the host country, financial market regulations, banking system, infrastructure quality, tax incentives, market size, regional integration arrangements and economic/political stability are very important determinants for FDI that creates a positive impact on overall economic growth.Abstract:
This paper reviews the literature dealing with the effects of FDI on Growth Numerous empirical studies have been conducted to investigate whether growth is influenced by FDI The overall evidence is best characterized as mixed as the results are regarding to the importance of labor costs, openness, investment climate, countries considered (developed vs developing) and fiscal incentives However, free trade zones, trade regime, the human capital base in the host country, financial market regulations, banking system, infrastructure quality, tax incentives, market size, regional integration arrangements and economic/political stability are very important determinant for FDI that creates a positive impact on overall economic growth In summary, consensus has been reached among academia and practitioners that FDI tends to have significant effect on economic growth through multiple channels such as capital formation, technology transfer and spillover, human capital (knowledge and skill) enhancement, and so onread more
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Environmental consequences of economic complexities in the EU amidst a booming tourism industry: Accounting for the role of brexit and other crisis events
Festus Fatai Adedoyin,Phillips O. Agboola,Ilhan Ozturk,Ilhan Ozturk,Ilhan Ozturk,Festus Victor Bekun,Mary Oluwatoyin Agboola +6 more
TL;DR: In this paper, the traditional Environmental Kuznets Curve (EKC) model is assessed by adopting a One-step System Generalized Method of Moment (Sys GMM) on data for 26 EU member states over the period from 1995 to 2018.
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The effects of foreign direct investment on the host country's economic growth: theory and empirical evidence
Rosa Forte,Rui Moura +1 more
TL;DR: In this article, the main conclusion is that the effects of FDI on economic growth depend on the domestic conditions of the host country (e.g., human capital, economic and technological conditions, degree of openness of its economy).
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Foreign direct investment, export and economic growth: empirical evidence from new eu countries
Ali Acaravci,Ilhan Ozturk +1 more
TL;DR: In this paper, the authors provide a survey of the literature on FDI, export and growth, and empirically investigate the causal relationship between economic growth, export, and FDI for the ten transition European countries (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia).
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The determinants of FDI in Turkey: A Markov Regime-Switching approach
TL;DR: In this paper, the authors considered movements of Foreign Direct Investments (FDI) in Turkey, and therefore, to understand the dynamics of FDI, runs several nonlinear FDI equations in which the basic determinants of the FDI in Turkey are determined through Markov Regime-Switching Models (MSMs).
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Is foreign direct investment good for the poor? New evidence from African countries
Babajide Fowowe,Mohammed Shuaibu +1 more
TL;DR: In this paper, the authors conducted an empirical investigation of the relationship between foreign direct investment (FDI) inflows and poverty in selected African economies and found that FDI inflows have significantly contributed to poverty reduction in African countries.
References
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Book
Innovation and growth in the global economy
Gene M. Grossman,Elhanan Helpman +1 more
TL;DR: Grossman and Helpman as discussed by the authors developed a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.
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Multinational Enterprises and the Global Economy.
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How does foreign direct investment affect economic growth
TL;DR: In this article, the effect of FDI on economic growth in a cross-country regression framework was investigated. And they found that FDI contributes to economic growth only when a sufficient absorptive capability of the advanced technologies is available in the host economy.
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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.
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Multinational Corporations and Spillovers
Magnus Blomstrom,Ari Kokko +1 more
TL;DR: In the major home countries, the debate on foreign direct investment has ranged from worries that outward FDI may substitute for domestic investment and erode technology leadership, to the argument that firms must invest abroad in order to stay competitive in an increasingly international environment as mentioned in this paper.