FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: SOME EVIDENCE FROM ACROSS THE WORLD

Anita Halicioglu and Ferda Halicioglu

MPRA Paper from University Library of Munich, Germany

Abstract: This study is concerned about foreign direct investment (FDI) and economic growth across the world for the period of 1991-2001. This article produces fresh empirical evidence on the relation between FDI and economic growth obtained from single-equation and simultaneous equation estimates for 140 countries using macro economic variables. The results indicate that a positive and statistically significant estimate of coefficient of FDI is obtained from single equation ordinary least squares method for real per-capita GDP regressions in all but one case. There exists a positive and statistically significant relation between the real per-capita GDP and FDI in the case of many countries but correlation coefficient between exports-GDP ratio and percentage FDI is found to be insignificant. Country risk rating and the telecommunications variables are significant in all the relevant regressions and correlation estimates.

Keywords: Foreign direct investment; multinational corporations; composite risk rating; instrumental variable method; omitted variable method; simultaneous equation method (search for similar items in EconPapers)
JEL-codes: F15 O11 (search for similar items in EconPapers)
Date: 2006, Revised 2007
New Economics Papers: this item is included in nep-cwa and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Foreign direct investment and economic growth: some evidence from across the world (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:3563

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