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The Effects of FDI Inflows on Host Country Economic Growth

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Author Info

  • Johnson, Andreas

    ()
    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper discusses and models the potential of FDI inflows to affect host country economic growth. The paper argues that FDI should have a positive effect on economic growth as a result of technology spillovers and physical capital inflows. Performing both cross-section and panel data analysis on a dataset covering 90 countries during the period 1980 to 2002, the empirical part of the paper finds indications that FDI inflows enhance economic growth in developing economies but not in developed economies.

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File URL: http://www.kth.se/dokument/itm/cesis/CESISWP58.pdf
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Bibliographic Info

Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 58.

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Length: 57 pages
Date of creation: 29 Mar 2006
Date of revision:
Handle: RePEc:hhs:cesisp:0058

Contact details of provider:
Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Keywords: foreign direct investment; economic growth; developing economies; developed economies;

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References

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Citations

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Cited by:
  1. Lenuta CARP, 2012. "Analysis Of The Relationship Between Foreign Direct Investments And Economic Growth – Case Of Romania," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 9, pages 175-188, June.
  2. Yang, Boqiong & Chen, Jianguo, 2011. "An empirical model of the environmental effect of FDI in host countries: Analysis based on Chinese panel data," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 3, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  3. Imola Drigă, 2011. "FDI Flows and Host Country Economic Development," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(4), pages 101-108.
  4. Leitão, Nuno Carlos, 2012. "A panel data modelling of agglomeration and growth: cross-country evidence," MPRA Paper 37501, University Library of Munich, Germany.
  5. Olawumi Dele Awolusi, 2012. "Forecasting international technology transfer and international trade in Nigeria: a time series analysis," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(3), pages 282-297.
  6. Carike Claassen & Elsabé Loots & Henri Bezuidenhout, 2011. "Chinese Foreign Direct Investment in Africa," Working Papers 261, Economic Research Southern Africa.
  7. Ioannis Katsikis & Garyfallos Fragidis & Dimitrios Paschaloudis, 2012. "International and Cross Border Entrepreneurship: The Case of Greece and Bulgaria," ERSA conference papers ersa12p779, European Regional Science Association.

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