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Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship.
- Source :
-
World Development . Mar2005, Vol. 33 Issue 3, p393-407. 15p. - Publication Year :
- 2005
-
Abstract
- This paper investigates whether foreign direct investment (FDI) affects economic growth based on a panel of data for 84 countries over the period 1970-99. Both single equation and simultaneous equation system techniques are applied to examine this relationship. A significant endogenous relationship between FDI and economic growth is identified from the mid-1980s onwards. FDI not only directly promotes economic growth by itself but also indirectly does so via its interaction terms. The interaction of FDI with human capital exerts a strong positive effect on economic growth in developing countries, while that of FDI with the technology gap has a significant negative impact. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0305750X
- Volume :
- 33
- Issue :
- 3
- Database :
- Academic Search Index
- Journal :
- World Development
- Publication Type :
- Academic Journal
- Accession number :
- 16483515
- Full Text :
- https://doi.org/10.1016/j.worlddev.2004.11.001