Determinants of, and the Relation Between, Foreign Direct Investment and Growth

Ewe-Ghee Lim

320 citations0/0 files storedIMF Working Paper

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

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

Abstract

This paper summarizes recent arguments/findings on two aspects of foreign direct investment (FDI): its correlation with economic growth and its determinants. The first part focuses on recent literature regarding positive spillovers from FDI while the second deals with the determinants of FDI. The paper finds that while substantial support exists for positive spillovers from FDI, there is no consensus on causality. On determinants, the paper finds that market size, infrastructure quality, political/economic stability, and free trade zones are important for FDI, while results are mixed regarding the importance of fiscal incentives, the business/investment climate, labor costs, and openness.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 320 citations exist upstream.

References

1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 1994Investment under Uncertainty 1988The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions 1977Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach 1992International investment location decisions 1993An Empirical Assessment of the Proximity-Concentration Tradeoff between Multinational Sales and Trade 1997Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras 1996Foreign Direct Investment and Growth in EP and is Countries

Cited by

2005Economic growth in the 1990s: learning from a decade of reform 2006FDI, exports, and GDP in East and Southeast Asia—Panel data versus time-series causality analyses 2010Do Institutions Matter for Foreign Direct Investment?2015The impact of FDI on economic growth in Eurozone countries 2008Economic Reforms, FDI, and Economic Growth in India: A Sector Level Analysis

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.