Financial foreign direct investment and the economic performance of developing countries

Rodolphe Desbordes

Review of International Economics, 2022, vol. 30, issue 4, 1229-1257

Abstract: I investigate whether developed countries' financial foreign direct investment (FDI) has an indirect impact on the economic performance of developing countries' manufacturing sectors by influencing local financial financing conditions. I combine an interaction approach exploiting sector‐specific financial dependence with a “gravity‐based” instrumental variable strategy to detect a potential “access to external finance” effect. I find that higher greenfield FDI in local retail banking, but not in other financial functions, leads to better economic performance of the manufacturing sectors typically dependent on external finance during the period 2002–2014.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/roie.12601

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:30:y:2022:i:4:p:1229-1257

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().