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The Relationship between FDI and Growth under Economic Integration: Is There One?

In: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World

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  • Antonio Marasco

    (Lahore University)

Abstract

This study is a contribution to the debate on the relationship between FDI and growth. The idea that the alleged link between FDI and growth is rather the consequence of both FDI and growth responding endogenously to economic integration is tested empirically. The results confirm precisely this point: it is not FDI as such but economic integration, in any form or shape that determines growth.

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This chapter was published in:

  • Oguz Esen & Ayla Ogus (ed.), 2008. "Proceedings of the International Conference on Emerging Economic Issues in a Globalizing World," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2008.
    This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200818.

    Handle: RePEc:izm:prcdng:200818

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    Keywords: FDI; growth; economic integration;

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    1. M. Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(2), pages 143-197, June.
    2. Motta, Massimo & Norman, George, 1996. "Does Economic Integration Cause Foreign Direct Investment?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 757-83, November.
    3. Gao, Ting, 2005. "Foreign direct investment and growth under economic integration," Journal of International Economics, Elsevier, vol. 67(1), pages 157-174, September.
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