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How does foreign direct investment affect economic growth

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TLDR
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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This article is published in Journal of International Economics.The article was published on 1998-06-01 and is currently open access. It has received 4268 citations till now. The article focuses on the topics: Foreign direct investment & Productivity.

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The Impact of FDI, Cross Border Mergers and Acquisitions and Greenfield Investments on Economic Growth

TL;DR: In this paper, the authors investigated whether aggregate foreign direct investment (FDI), cross border mergers and acquisitions (M&A) and greenfield investments affects economic growth based on a panel data of 53 countries over the period 1996-2006 Both causality tests and single growth equations are applied to examine this relationship.
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On the Economic Dimensions of Corporate Social Responsibility Exploring Fortune Global 250 Reports

TL;DR: In this paper, the authors explore micro-level evidence by examining what Fortune Global 250 firms themselves report about their economic impact and find that it is influenced by region, sector, and size but not by profitability.
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Financial Development and Foreign Direct Investment—The Moderating Role of Quality Institutions

TL;DR: In this paper, the authors investigated the financial development and FDI nexus, using institutional quality as a moderator, and found that financial markets are less attractive to FDI relative to financial institutions, while concentration on financial markets may multiply the benefits of FDI.
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Openness, Absorptive Capacity, and Regional Innovation in China:

TL;DR: In this paper, the role of absorptive capacity in mediating the spillover effect brought about by openness in China is investigated. And the impacts of openness on regional innovation in China are systematically investigated.
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Financial Innovation, Stock Market Development, and Economic Growth: An Application of ARDL Model

TL;DR: In this paper, the authors explored the relationship between economic growth, financial innovation, and stock market development of Bangladesh for the period 1980-2016, using the autoregressive distributed lagged (ARDL) bounds testing approach.
References
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ReportDOI

Endogenous Technological Change

TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
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.
Book

Innovation and growth in the global economy

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.
Posted Content

A sensitivity analysis of cross-country growth regressions

TL;DR: The authors examined whether the conclusions from existing studies are robust or fragile to small changes in the conditioning information set and found a positive, robust correlation between growth and the share of investment in GDP and between investment share and the ratio of international trade to GDP.
Journal ArticleDOI

Institutions and economic performance: cross‐country tests using alternative institutional measures

TL;DR: The authors compared more direct measures of the institutional environment with both the instability proxies used by Barro (1991) and the Gastil indices, by comparing their effects both on growth and private investment.
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How does foreign direct investment affect economic growth?

FDI is an important vehicle for technology transfer and contributes more to economic growth than domestic investment, but only when the host country has a minimum threshold stock of human capital.

How does foreign direct investment affect economic growth?

Foreign direct investment (FDI) contributes to economic growth by transferring technology, but only when the host country has a minimum stock of human capital.