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Sectoral Analysis of Foreign Investment and Growth In the Developed Countries

Author

Listed:
  • Tam Bang Vu

    (College of Business and Economics, University of Hawaii at Hilo)

  • Ilan Noy

    (Department of Economics, University of Hawaii at Manoa)

Abstract

Empirical studies on FDI and growth in developed countries have yielded conflicting results using cross-country regressions. We use sectoral data for a group of six country members of the Organization for Economic Cooperation and Development. Our paper is the first to identify the sector-specific impact of FDI on growth in the developed countries. Our results show that FDI might have positive or negative effect on economic growth operating directly and through its interaction with labor. Moreover, we find the effects seem to be very different across countries and economic sectors.

Suggested Citation

  • Tam Bang Vu & Ilan Noy, 2007. "Sectoral Analysis of Foreign Investment and Growth In the Developed Countries," Working Papers 200725, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:200725
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_07-25.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Manamba EPAPHRA, 2016. "Foreign Direct Investment and Sectoral Performance in Tanzania," Journal of Economics and Political Economy, KSP Journals, vol. 3(4), pages 670-719, December.

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    More about this item

    Keywords

    Foreign direct investment; growth;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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