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FDI, banking crises and growth: direct and spill over effects

Brahim Gaies, Stéphane Goutte and Khaled Guesmi

Applied Economics Letters, 2019, vol. 26, issue 20, 1655-1658

Abstract: This study suggests a new decomposition of the effect of foreign direct investment (FDI) on the long-term growth of developing countries. It reveals that FDI not only has a direct positive effect on growth, but also increases it by reducing the recessionary effect resulting from a banking crisis. However, these advantages are conditioned by the FDI threshold, which in turn depends on the ‘absorption capacity’ of the host country.

Date: 2019
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Working Paper: FDI, banking crisis and growth: direct and spill over effects (2019) Downloads
Working Paper: FDI, banking crises and growth: direct and spill over effects (2019)
Working Paper: FDI, banking crises and growth: direct and spill over effects (2019) Downloads
Working Paper: FDI, banking crisis and growth: direct and spill over effects (2019) Downloads
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DOI: 10.1080/13504851.2019.1591587

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