How does foreign direct investment affect economic growth
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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.About:
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.read more
Citations
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A Causal Relationship between Trade, Foreign Direct Investment and Economic Growth for Greece
TL;DR: In this paper, the authors investigated the relationship between trade, foreign direct investment and economic growth in Greece over the period 1960-2002 and showed that there is a causal relationship between the examined variables.
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Private capital flows, financial development, and economic growth in developing countries
TL;DR: In this paper, the authors argue that capital flows have significant effects on economic growth, and cite the growth-promoting attributes of capital inflows as a key benefit of financial integration for developing countries.
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Multinationals and Linkages: An Empirical Investigation
TL;DR: In this paper, the authors explore the channels through which these positive and negative externalities may be materializing, focusing on the role of backward linkages, and criticize the common usage of the domestic sourcing coefficient as an indicator of a firm?s linkage potential and propose an alternative, theoretically derived indicator.
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Manufacturing FDI and Economic Growth: Evidence from Asian Economies
TL;DR: In this paper, the impacts of different sector-level foreign direct investment (FDI) inflows on host country's economic growth were studied. But, the effect of FDI in non-manufacturing sectors did not play a significant role in enhancing economic growth.
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The pecking order of cross-border investment
TL;DR: In this paper, the authors focus on two key determinants of cross-border investment in that countries become financially integrated through some types of investment rather than others, and find that in particular FDI and to some extent also loans, are substantially more sensitive to information frictions than investment in portfolio equity and debt securities.
References
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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.
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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
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.
Posted Content
A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
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.
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Institutions and economic performance: cross‐country tests using alternative institutional measures
Stephen Knack,Philip Keefer +1 more
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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