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Foreign direct investment, host country factors and economic growth

Foreign direct investment, host country factors and economic growth

Solomon, Edna Maeyen (2011) Foreign direct investment, host country factors and economic growth. Ensayos Revista de Economia, XXX (1). pp. 41-70. ISSN 1870-221X

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This paper analyses how the levels of economic development, human capital, financial development and the qualities of the economic and political environments in host countries simultaneously affects the impact of aggregate inflows of Foreign Direct Investment (FDI) on economic growth. Multiple interaction terms are employed between inward FDI and each of the host country factors mentioned above. The System GMM estimator is applied to a panel of 111 countries from 1981 to 2005. The results show that the level of economic development, human capital and quality of the political environment all significantly affect the relationship between inward FDI and growth.

Item Type: Article
Uncontrolled Keywords: Foreign direct investment; FDI; Economic growth; Panel data analysis; Economic growth; Host country factors; System GMM
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of International Business & Economics
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
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Last Modified: 04 Aug 2021 16:32
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: None

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