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Reexamining the Conditional Effect of Foreign Direct Investment

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Author Info

  • Bruno, Randolph Luca

    ()
    (University College London)

  • Campos, Nauro F

    ()
    (Brunel University)

Abstract

The prevailing consensus is that foreign direct investment (FDI) effects are conditional. At the macro level, they depend upon minimum levels of human capital or financial development, while at the micro level, they depend on type of linkage (forwards, backwards, or horizontal). This paper presents new evidence showing that these effects are substantially less "conditional". We use a meta-analysis on two data sets covering 549 micro and 553 macro estimates of the effects of FDI on performance. We find these effects tend to be larger in macro than in micro studies, and greater in low- than in high-income countries.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7458.

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Length: 63 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7458

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Related research

Keywords: foreign direct investment; economic growth; firm performance; meta-regression-analysis;

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References

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Cited by:
  1. JUDE, Cristina & LEVIEUGE, Gregory, 2013. "Growth effect of FDI in developing economies: The role of institutional quality," MPRA Paper 49321, University Library of Munich, Germany.
  2. Cristina Jude & Grégory Levieuge, 2014. "Growth Effect of FDI in Developing Economies: the Role of Institutional Quality," Working Papers halshs-01014404, HAL.

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