Foreign Direct Investment And Economic Growth: Some Evidence From Across The World
AbstractThis study is concerned about foreign direct investment (FDI) and economic growth across the world for the period of 1991-2001. This article produces fresh empirical evidence on the relation between FDI and economic growth obtained from single-equation and simultaneous equation estimates for 140 countries using macro economic variables. The results indicate that a positive and statistically significant estimate of coefficient of FDI is obtained from single equation ordinary least squares method for real per-capita GDP regressions in all but one case. There exists a positive and statistically significant relation between the real per-capita GDP and FDI in the case of many countries but correlation coefficient between exports-GDP ratio and percentage FDI is found to be insignificant. Country risk rating and the telecommunications variables are significant in all the relevant regressions and correlation estimates.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3563.
Date of creation: 2006
Date of revision: 2007
Foreign direct investment; multinational corporations; composite risk rating; instrumental variable method; omitted variable method; simultaneous equation method;
Other versions of this item:
- Anita Ghatak & Ferda Halicioglu, 2007. "Foreign direct investment and economic growth: some evidence from across the world," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 9(4), pages 381-394.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- F15 - International Economics - - Trade - - - Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
- NEP-CWA-2007-06-23 (Central & Western Asia)
- NEP-DEV-2007-06-23 (Development)
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