The Political Economy of U.S. Direct Investment in East Asian NICs, 1966--2000

Uk Heo and Sung Deuk Hahm

International Interactions, 2007, vol. 33, issue 2, 119-133

Abstract: This paper examines the role of FDI from the United States in the economic performance of East Asian NICs for 1966--2000. To this end, we draw our argument of the role of FDI from the modernization--dependency debate. Then, we test the economic effects of U.S. direct investment on economic growth in East Asian NICs using a neoclassical production function model that captures the economic impacts of both foreign and domestic investment on economic growth. Our empirical results show that U.S. direct investment has a positive and significant effect on economic growth in East Asian NICs.

Date: 2007
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DOI: 10.1080/03050620701277723

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