multinationals' entry and it consists of a unified study of absorptive capacities. We start from the idea that FDI speeds up the … FDI depends on the country specific absorptive capacity. We first interact FDI individually with different growth … determinants and we find that the contribution of FDI to economic growth is positive and significant depending on the level of …

types of FDI: unlike greenfield investment, M&As partly represent a rent accruing to previous owners, and do not necessarily … contribute to expanding the host country's capital stock. The model suggests that greenfield FDI has a stronger impact on growth … than M&A sales. This hypothesis is supported by our empirical results, which show that greenfield FDI enhances growth …

While existing literature points to a positive impact of FDI on host countries’ growth, little is known about how … inward FDI contributes to economic volatility in the host country. In this paper, we investigate the FDI-output growth … statistically significant relationship between inward FDI stock and sectoral output volatility. We also show that the impact of …