Foreign Direct Investment and Economic Growth in LDCs: Some Further Evidence

Balasubramanyam Vn, Mohammed Salisu and David Sapsford

Chapter 13 in Creating an Internationally Competitive Economy, 2001, pp 233-249 from Palgrave Macmillan

Abstract: Abstract The phenomenon of foreign direct investment (FDI) has generated a large and still growing literature. Particular interest in the last decade (no doubt encouraged by the development of the so-called ‘new’ theory of economic growth) has been directed to the role played by FDI in determining the pace of economic growth in less-developed countries (LDCs), and it this topic that forms the subject matter of this chapter. Our motivation in writing this chapter is twofold. First, while the relationship between FDI and growth has been intensely debated in the literature, the precise nature of the relationship and the preconditions required for FDI to promote growth and the mechanisms through which it does so remain largely unexplored. Second, recent developments in growth theory provide a convenient framework within which to analyse the relationship between FDI and growth. Indeed, many of the growth-promoting factors, such as human capital and externalities, have long been recognized to be the main ingredients of FDI.

Keywords: Human Capital; Foreign Direct Investment; Gross Domestic Product; Real Wage; Import Substitution (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:palchp:978-0-230-55706-2_13

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230557062

DOI: 10.1057/9780230557062_13

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().