This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using...

This paper reports on trends and levels of capital inflows, and the volatility of such inflows, to a sample of 60 developing countries over the period from 1970 to 1997. The data cover aid and other development finance as the principal forms of official flows, FDI and other private flows, and...