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Is foreign direct investment good for growth? Evidence from sectoral analysis of China and Vietnam.
- Source :
-
Journal of the Asia Pacific Economy . Nov2008, Vol. 13 Issue 4, p542-562. 21p. 6 Charts, 1 Graph. - Publication Year :
- 2008
-
Abstract
- We estimate the impact of FDI on growth using sectoral data for FDI inflows to China and Vietnam. Previous empirical studies, using either cross-country growth regressions or firm-level micro-econometric analysis, fail to reach a consensus. Our paper is the first to use sectoral FDI inflow data to evaluate the sector-specific impact of FDI on growth. Our results show that, for the two developing-transition economies we examine, FDI has a statistically-significant positive effect on economic growth operating directly and through its interaction with labor. Intriguingly, we find the effects seem to be very different across economic sectors, with most of the beneficial impact concentrated in the secondary industries. Other sectors appear to see much less growth benefit from sector-specific FDI. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13547860
- Volume :
- 13
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Journal of the Asia Pacific Economy
- Publication Type :
- Academic Journal
- Accession number :
- 34555309
- Full Text :
- https://doi.org/10.1080/13547860802364976