This paper investigates the simultaneous causal relationship between investments in information and communication technology and foreign direct investment, with reference to its implications on economic growth. For the empirical analysis we use data from 23 major countries with heterogeneous economics development for the period 1976-1999. The results of unit roots and Johansen co-integration te...

The study analyzes the impact of foreign direct investment (FDI) and domestic investment (DI) on economic growth in Sub-Saharan Africa for the period 1990–2003. The results show that DI is positive and significantly correlated with economic growth in both the OLS and fixed effects estimation, but FDI is positive and significant only in the OLS estimation. The study also found that FDI has an in...

Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP), foreign direct investment (FDI) and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006), we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the ...

Through the individual fixed effects model, the article makes the empirical study of 23 developing host countries, concluding that FDI weakly influences on the economic expansion rate directly and indirectly, the interaction term of FDI with regime affects the growth rate significantly and what is more, FDI’s interaction with regime contributes to the economic increase extensively through crowd...

Most Latin American countries crafted market-friendly reforms during the 1990s. In particular, the political discourse often stressed the attraction of foreign direct investment (FDI) as a key component of the quest for development and particularly the fight against poverty. However, the precise link between FDI and poverty has been neglected by the literature, at least by that with an empirica...

The last two decades of the 20 century have seen major shifts in the size of cross-border capital flows (see figure 1.). FDI flows to developing countries and economies in transition have proved to be the source of economic growth. FDI inward increased from 50,1 billions of dollars annual average in 1985-95 to 199 billions in 1998 and 207 billions in 1999. In same time, FDI inward stocks increa...

A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI ...

We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of FDI differs according to the level of development: we depict two different patterns, one for OECD (dev...

Many of the EU accession countries are confident that membership will result in substantially increased inward foreign direct investment (FDI). At the same time, other peripheral EU members (such as Spain and Portugal) are concerned that FDI will be displaced to these new countries. I postulate that the new members cannot expect the same increased FDI flows that resulted to earlier EU entrants....

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also presen...