The Positive Causal Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship
AbstractPrevious research has argued that foreign direct investment (FDI) exerts a positive and causal impact on the productivity of the recipient countries. However, we find that there is little macroeconomic evidence that FDI fosters productivity growth in recipient countries, including in those with high absorptive capacity, once we use an instrumental variables (IV) estimator robust to outliers.
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Bibliographic InfoPaper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 1106.
Length: 46 pages
Date of creation: Mar 2011
Date of revision:
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More information through EDIRC
Foreign Direct Investment; Productivity; Robust Regression.;
Find related papers by JEL classification:
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- F2 - International Economics - - International Factor Movements and International Business
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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