We explore the effect of foreign direct investment on economic growth in developing countries, distinguishing between mergers and acquisitions (“M&As”) and “greenfield” investment. A simple model underlines that, unlike greenfield investment, M&As partly represent a rent accruing to...

Se desarrolla un modelo de crecimiento endogeno con dos sectores: comerciable y no-comerciable. El sector comerciable es la fuente del conocimiento tecnologico. Los Hogares tienen una restriccion al credito, asi el capital comerciable sirve unicamente como colateral para los prestamos...

Se resume la evidencia de la relacion entre flujos financieros y crecimiento economico. Se presentan los principales resultados teoricos de un modelo de crecimiento endogeno con dos bienes, comerciable (manufacturero) y no-comerciable (no-manufacturero). Se muestra que una liberalizacion...

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the...

FDI is generally attributed to have positive impact for developing countries. In contrast, this paper shows that foreign capital inflows may cause an economy to be stuck in a middle-income trap. Introducing a simple capital market imperfection into a standard neoclassical (open-economy) model of...

Most of the expansion of global trade during the last three decades has been of the North-South kind – between capital-abundant developed and labour-abundant developing countries. Based on this observation, I argue that the recent growth of world trade is best understood from a...

This volume was prepared by Sebastian Benz while he was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes five self-contained chapters. All chapters discuss different...

FDIs are considered a key engine to enhance economic growth both in developed and emerging economies, through various channels such as technology transfer, human and physical capital accumulation, commercial channel. The present paper aims at emphasizing the strong, long – term impact of FDI...

This paper studies the impacts of urbanization and wage on foreign direct investment (FDI) in Central Europe. This paper applies the panel data model for study of urbanization and FDI in Central Europe selected countries. We consider Central Europe selected countries over the period 1992-2009....

This paper takes the position that technology transfers associated with foreign direct investment inflows (FDI) are an important determinant of economic growth in developing countries. The paper also posits that technology transfers, ceteris paribus, depend on the attributes of FDI providers,...