Foreign Direct Investment And Economic Growth
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.
Volume (Year): 1 (2007)
Issue (Month): 9 (November)
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"A Simple Theory of International Trade with Multinational Corporations,"
3445092, Harvard University Department of Economics.
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"Firms, Contracts, and Trade Structure,"
3196328, Harvard University Department of Economics.
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