Literature review on the contributions of inward FDI to host country development: meta-analyses

Byung Il Park and Sang-Uk Jung

International Journal of Multinational Corporation Strategy, 2016, vol. 1, issue 2, 155-177

Abstract: Host countries may obtain economic growth and reap knowledge spillovers from foreign investments, but the impacts may vary with local markets' levels of human capital, technological progress and corruption. Due to these reasons, researchers examining the impacts of FDI on these two areas still fail to reach a consensus. Based on such awareness, we explore current literature and the different arguments on the extant research domains and test hypotheses by using a meta-analysis technique in order to analyse the empirical literature on economic growth and spillovers. Our findings suggest a linear effect of human capital and technological progress on economic development and also show a curvilinear relationship between spillovers and the host market's level of change with respect to human capital and corruption.

Keywords: inward FDI; foreign direct investment; economic growth; knowledge spillovers; multinational enterprises; MNEs; human capital; technological progress; corruption; meta-analyses; literature review; host country development; multinationals. (search for similar items in EconPapers)
Date: 2016
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