Foreign Direct Investment, Economic Performance and Trade Liberalisation

Sir David Greenaway (), David Sapsford and Stephan Pfaffenzeller

The World Economy, 2007, vol. 30, issue 2, 197-210

Abstract: In a number of influential papers published by V. N. Balasubramanyam and collaborators during the decade of the 1990s, compelling arguments and supporting evidence was presented to indicate that export‐promoting trade and investment strategies attract more and more productive inflows of foreign capital than do import‐substituting strategies. This paper revisits these hypotheses in the context of more recent cross‐section data and reports evidence to suggest that the earlier findings are robust.

Date: 2007
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