The Effects of Foreign Investment on Overall and Sectoral Growth in Third World States

John M. Rothgeb
Additional contact information
John M. Rothgeb: Department of Political Science, Boston University

Journal of Peace Research, 1984, vol. 21, issue 1, 5-14

Abstract: This research examines the impact of flows and stocks of foreign investment on growth in Third World countries. Overall growth in GDP per capita and in agriculture, manufacturing, transportation and com munications, and domestic trade are investigated. In addition to foreign investment, variables relating to domestic investment, population, and wealth are included in the analysis. The results indicate that stocks of foreign investment have a negative long-term effect on overall growth, while flows have a short-run positive effect. The variable with the single greatest impact on overall growth, however, is growth in domestic investment. The sectoral results indicate that foreign investment is positively related to growth in all sectors. The pattern of the findings, however, suggests that foreign investment has an initial disruptive effect on the economies of non-American underdeveloped states.

Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://jpr.sagepub.com/content/21/1/5.abstract (text/html)

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:sae:joupea:v:21:y:1984:i:1:p:5-14

Access Statistics for this article

More articles in Journal of Peace Research from Peace Research Institute Oslo
Bibliographic data for series maintained by SAGE Publications ().