EconPapers    
Economics at your fingertips  
 

The Effect of Foreign Direct Investment on Economic Growth

Sergey Kondyan () and Karine Yenokyan
Additional contact information
Sergey Kondyan: Nazarbayev University
Karine Yenokyan: Johns Hopkins University

Eastern Economic Journal, 2019, vol. 45, issue 4, 532-564

Abstract: Abstract We develop a theoretical model that studies the effects of FDI on growth in the absence of channels through which the spillover effects of FDI operate. By isolating the effects of FDI, we examine how FDI affects growth through its primary function of capital accumulation. Untangling the growth effects of FDI operating through capital accumulation from the spillover effects of FDI can help explain the ambiguity in the empirical evidence on the subject. The transitional dynamics are characterized by the interdependence of the variables of the source and recipient countries. We study the dynamic system through the model calibration analysis.

Keywords: Foreign direct investment; Growth; Transitional dynamics (search for similar items in EconPapers)
JEL-codes: O4 F15 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41302-019-00140-9 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:easeco:v:45:y:2019:i:4:d:10.1057_s41302-019-00140-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

DOI: 10.1057/s41302-019-00140-9

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-04-23
Handle: RePEc:pal:easeco:v:45:y:2019:i:4:d:10.1057_s41302-019-00140-9