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Foreign Direct Investment And Economic Growth

Author

Listed:
  • George Ciobanu

    (University of Craiova, Faculty of Economics and Business Administration, Romania)

Abstract

How does foreign direct investment triggered by foreign economic growth affect domestic economic activity? Estimates produced using foreign GDP growth rates for changes in foreign activity indicate that 10% greater foreign capital investment is associated with 2.2% greater domestic investment, and that 10% greater foreign employee compensation is associated with 4.0% greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated.

Suggested Citation

  • George Ciobanu, 2007. "Foreign Direct Investment And Economic Growth," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(9), pages 94-97, November.
    • Handle: RePEc:aio:rteyej:v:1:y:2007:i:9:p:94-97
    as

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    File URL: http://feaa.ucv.ro/RTE/009-11.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign direct investment; economic growth; multinational firms;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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