In contrast to the empirical literature’s focus on foreign direct investment (FDI), this study examines the effects of foreign portfolio investment (FPI) and “other” foreign investment (OFI) on economic growth using data on 88 countries from 1977 through 2000. Most measures suggest that FPI has no effect, and some results indicate that OFI has a negative impact on growth that is somewhat mitiga...

Inflows of foreign direct investment generate externalities that spill over to domestic firms and raise their productivity. This article examines the extent of spillover effects of foreign direct investment for firms in the highly disaggregated garment (ISIC 3221) and electronics industries (ISIC 3832) in Indonesia. Both are export-intensive industries, but differ greatly in technological sophi...

The objective of this paper is to reinvestigate the relationship between natural gas consumption and economic growth by including foreign direct investment, capital and trade openness in Malaysia for the period of 1971-2012. The structural break unit root test is employed to investigate the stationary properties of the series. We have applied combined cointegration test to examine the relations...

I use newly-released administrative data on properties owned by overseas companies to study the effect of foreign investment on the housing market in England and Wales. To estimate the causal effect, I construct an instrument for foreign investment based on economic shocks abroad. Foreign investment is found to have a positive effect on house price growth. This effect is present at different pe...

This article provides a comparative legal study of certain salient aspects of the Chinese and Indian Foreign Direct Investment (FDI) regimes, keeping in mind the differences in the constitutions and legal systems of both countries. India is presently perceived by foreign investors as having an uncertain regulatory environment as far as its FDI policy. However, implementation is a concern, thoug...

This paper aims to investigate the causal relationship between foreign direct investment and gross domestic savings in Bangladesh over a period of 1985-2007. In doing so, Johansen cointegration technique and error correction methods are employed to examine the long run and short run relationship between foreign direct investment and gross domestic savings. To determine the direction of causalit...

This paper examines the relationship between foreign direct investment, openness and economic growth in Sudan during the period 1972-2011 using Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The study used autoregressive distributed lag (ARDL) approach to cointegration analysis proposed by Pesaran and Shin (...

T his study investigates the effects of extra-ECOWAS merchandise trade and investment flows on the transmission of business cycles in the selected ECOWAS between 1985 and 2014.  The study finds that total trade and foreign direct investment (FDI) significantly influence the transmission of business cycles with elasticities of 1.1 and 0.7, respectively in the long run. There are little vari...

Private foreign capital, whose presence in Indian industry was long regarded with concern and suspicion, is now touted as a panacea for India’s economic problems. This paper compares the relative performance of domestic and foreign-controlled firms in India, and evaluates the contribution of foreign investment over the last five decades. We assess the impact of government policy towards foreign...

Over the past forty-five years, bilateral investment treaties (BITs) have become the most important international legal mechanism for the encouragement and governance of foreign direct investment. Their proliferation over the past two decades in particular has been phenomenal. These intergovernmental treaties typically grant extensive rights to foreign investors, including protection of contrac...