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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Multinational enterprises, technology diffusion, and host country productivity growth
TL;DR: In this article, the authors investigated US multinational enterprises (MNEs) as a channel of international technology diffusion in 40 countries from 1966 to 1994 and found that the technology transfer provided by US MNEs contributes to the productivity growth in DCs but not in LDCs.
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FDI and Economic Growth: The Role of Local Financial Markets*
TL;DR: In this paper, 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.
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Determinant Factors of FDI Spillovers - What Do We Really Know?
Nuno Crespo,Maria Paula Fontoura +1 more
TL;DR: In this article, the authors survey the arguments that support these factors and the empirical evidence already produced, and the results show contrary effects or, in some cases, are still insufficient to draw reliable conclusions.
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Causality Tests for Cross-Country Panels: a New Look at FDI and Economic Growth in Developing Countries
TL;DR: In this paper, the authors use a mixed fixed and random (MFR) panel data estimation method to allow for cross country heterogeneity in the causal relationship between FDI and growth and find that the relationship between investment, both foreign and domestic, and economic growth in developing countries is highly heterogeneous.
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Foreign direct investment, economic freedom and growth: new evidence from Latin America
TL;DR: This paper explored the interplay between economic freedom, foreign direct investment (FDI) and economic growth using panel data analysis for a sample of 18 Latin American countries for 1970-1999 and found that economic freedom in the host country is a positive determinant of FDI inflows.
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.
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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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