Sayek, Selin; Alfaro, Laura; Chanda, Areendam; … - International Monetary Fund (IMF) - 2003
This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and … markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we … show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in …