This paper proposes open- and closed-economy versions of an endogenous growth model to evaluate the impact of foreign direct investment (FDI) and international knowledge transfers and spillovers on the long-run growth rate of the recipient economy. In the open economy, foreign investors may...

This paper surveys the latest developments in the literature on the impact of inward foreign direct investment (FDI) on growth in developing countries. In general, FDI is thought of as a composite bundle of capital stocks, know-how, and technology, and hence its impact on growth is expected to...

This paper develops an endogenous growth model with foreign direct investment (FDI) and examines the impact of the latter on capital accumulation, output and total factor productivity (TFP) growth in the recipient economy. Time series and panel data evidence are provided for a sample of OECD and...