EconPapers    
Economics at your fingertips  
 

Foreign direct investment, economic freedom and economic growth: International evidence

W.N.w Azman-Saini (), Ahmad Zubaidi Baharumshah () and Siong Hook Law ()

Economic Modelling, 2010, vol. 27, issue 5, 1079-1089

Abstract: In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).

Keywords: Foreign; direct; investment; Economic; freedom; Economic; growth; Absorptive; capacity; Generalized; method-of-moments; R&D; spillovers (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (78) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264-9993(10)00063-5
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:27:y:2010:i:5:p:1079-1089

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-12
Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:1079-1089