Good or bad? The influence of FDI on productivity growth. An industry-level analysis

Carmen Fillat · Julia Woerz

56 citations0/0 files storedJournal of International Trade & Economic Development

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International Business and FDI Global trade and economics Economic Growth and Productivity

Abstract

This paper attempts to reconcile the often inconclusive evidence on the role of FDI in the process of economic development by taking into account the heterogeneity both among industries and among countries. Using a comparable database at the industry level for 35 countries in the OECD, Asia and Eastern Europe from 1987 to 2002, we test for the influence of both stage of development and sectoral FDI patterns in the relationship between FDI and productivity growth. In certain industries and for the catching-up countries, a significant and positive relationship emerges when FDI coincides with high investment or export orientation.

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References

1993Innovation and Growth in the Global Economy.1998How does foreign direct investment affect economic growth?1988The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions 2007Multinational Enterprise and Economic Analysis 1995On bias, inconsistency, and efficiency of various estimators in dynamic panel data models 1999Foreign direct investment-led growth: evidence from time series and panel data 1996Multinational enterprise and economic analysis 2002Does Foreign Direct Investment Accelerate Economic Growth?

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