How Does Foreign Direct Investment Affect Economic Growth
Download or Read eBook How Does Foreign Direct Investment Affect Economic Growth PDF written by Mr.Eduardo Borensztein and published by International Monetary Fund. This book was released on 1994-09-01 with total page 26 pages. Available in PDF, EPUB and Kindle.
| Author | : Mr.Eduardo Borensztein |
| Publisher | : International Monetary Fund |
| Total Pages | : 26 |
| Release | : 1994-09-01 |
| ISBN-10 | : 9781451853278 |
| ISBN-13 | : 1451853270 |
| Rating | : 4/5 (78 Downloads) |
Book Synopsis How Does Foreign Direct Investment Affect Economic Growth by : Mr.Eduardo Borensztein
Book excerpt: We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms.
