IDEAS home Printed from https://ideas.repec.org/a/rfa/aefjnl/v2y2015i4p95-102.html
   My bibliography  Save this article

Does Foreign Direct Investment Matter Anymore?

Author

Listed:
  • John C. Edmunds
  • Gaofeng Zou

Abstract

Although Foreign Direct Investment (FDI) is widely believed to raise the receiving country¡¯s economic growth, the statistical evidence to support that belief is weak. The macro-level data portray a mixed set of results. FDI neither raises nor lowers a country¡¯s economic growth in the time range from the year when the FDI comes in to three years after it arrives. There are many possible explanations why the data show such a weak association between FDI and economic growth. These include reasons why the data do not show the benefit, even though the benefit exists; and reasons why FDI might not raise a country¡¯s economic growth. In the data that we examined, increases in a country¡¯s national stock market capitalization were more positively associated with the country¡¯s subsequent economic growth.

Suggested Citation

  • John C. Edmunds & Gaofeng Zou, 2015. "Does Foreign Direct Investment Matter Anymore?," Applied Economics and Finance, Redfame publishing, vol. 2(4), pages 95-102, November.
    • Handle: RePEc:rfa:aefjnl:v:2:y:2015:i:4:p:95-102
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/aef/article/view/1099/1058
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/aef/article/view/1099
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    foreign direct investment; international finance; economic development;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F3 - International Economics - - International Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:aefjnl:v:2:y:2015:i:4:p:95-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.