Foreign Direct Investment and Economic Growth

Guido Baldi and Jakob Miethe

No 71, DIW Roundup: Politik im Fokus from DIW Berlin, German Institute for Economic Research

Abstract: Various proposals are currently being suggested to encourage higher foreign direct investment in countries within the euro area, particularly between individual member states. The intended goal is to assist in stimulating economic growth in the euro area. Against this background, this article provides an overview of the large and heterogeneous academic literature on the influence of direct investment on economic growth. The results of the existing studies indicate that direct investment often acts as a kind of catalyst and that a positive influence on economic growth becomes more probable when a country has a population with a high level of education, high-quality infrastructure, or a developed financial system.

Pages: 6 p.
Date: 2015
New Economics Papers: this item is included in nep-fdg and nep-gro
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Citations: View citations in EconPapers (4)

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