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The Distribution of Foreign Direct Investment and the Excluded Economies

Author

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  • Chakrabarti, A.

Abstract

The paper takes as its objective context the growing disparity in the distribution of Foreign Direct Investment (FDI) among the developing nations. While FDI in the developing world has grown fairly rapidly since the late 1980s, a disaggregated analysis demonstrates a considerable imbalance at the macro level. While China stands out as the largest recipient, the Sub-Saharan African (SSA) countries and the countries of Middle East and North Africa (MNA) are experiencing a continuous drying up of inbound FDI. The goal of this paper is to first develop a theoretical model of the economic determinants of FDI and then use the structutral model to identify empirically the causes of and suggest potential remedies for, the disparity in the distribution of inward FDI among the developing economies.

Suggested Citation

  • Chakrabarti, A., 1997. "The Distribution of Foreign Direct Investment and the Excluded Economies," Working Papers 397, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:397
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    Cited by:

    1. Ziacik, Terri, 2000. "An assessment of the Estonian investment climate : Results of a survey of foreign investors and policy implications," BOFIT Discussion Papers 3/2000, Bank of Finland, Institute for Economies in Transition.

    More about this item

    Keywords

    INVESTMENTS ; DEVELOPING COUNTRIES;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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