This paper contains an empirical assessment of the growth effects of foreign direct investment (FDI) in European Union (EU) countries, when controlling for other growth determinants. Using data over the period 1980-1996, we obtained estimates of the growth effects of FDI for each country in...

Does inward foreign direct investment (FDI) promote economic growth in China? This study extends the previous studies on the issue by assessing empirically to what extent FDI inflows have contributed to China’s outstanding performance of income growth in the period 1986-97. A model of...

Purpose–In spite of being the second largest recipient of foreign direct investment (FDI) in the world, China shows limited evidence of considerable FDI benefits on growth (Fan and Hu; Luo; Ran et al.). Motivated by Alfaro et al.'s model, the purpose of this study is to test whether poor...

The objective of this paper is to analyze empirically the effects of foreign direct investment (FDI) on investment in Uruguay in a long run perspective (1960-2011). On the basis of varied theoretical and analytic elements, the descriptive analysis and one empirical study with the methodology of...

Despite plausible theoretical grounds for presuming a positive relationship between foreign direct investment inflows (FDI) and economic growth, existing empirical evidence on this nexus is inconclusive. In an effort to add to the empirical literature, this paper estimates the relationship...

The boom of inward foreign direct investment (FDI) in East Asia since the mid-1980s and the recent Asian financial crisis raise the critical question of how FDI affects host economies. While there is considerable evidence on the link between FDI and economic growth, the causality between the two...

An outward-oriented development strategy and prudent financial policies resulted in an impressive economic growth and led to a large accumulation of external financial assets. The major Emirates intend to leverage the favorable economic environment to carry out reforms that will encourage more...

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI spillovers is...

This paper presents the primary institutions and economic policies that have led to Chile’s remarkable record of stability and growth over the past twenty years. The core of this policy stance is the combination of fiscal discipline and an open trade policy regime, together with carefully...

This paper summarizes recent arguments/findings on two aspects of foreign direct investment (FDI): its correlation with economic growth and its determinants. The first part focuses on recent literature regarding positive spillovers from FDI while the second deals with the determinants of FDI....