Effect of Foreign Direct Investment on Economic Growth and Domestic Investment: Evidence from OECD Countries

Emre Gökçeli, Jan Fidrmuc and Sugata Ghosh
Additional contact information
Emre Gökçeli: Brunel University London [Uxbridge]
Sugata Ghosh: Brunel University London [Uxbridge]

Post-Print from HAL

Abstract: This study assesses the impact of foreign direct investment (FDI) inflows on economic growth and domestic investment in a panel of Economic Co-operation and Development (OECD) countries during the period of 1990–2017 by utilizing the method of fixed-effects and system generalized method of moments (GMM). The findings show that FDI inflows are positively and significantly associated with the economic growth of the host economy. When considering the origin of FDI, we find that FDI from developed countries contributes to the growth rate in the receiving economy, while FDI from developing countries shows no significant effect. Importantly, FDI does not appear to crowd in or out domestic investment. Only FDI from developed countries is associated with crowding in of domestic investment.

Keywords: foreign direct investment; economic growth; domestic investment; crowding in/out; OECD (search for similar items in EconPapers)
Date: 2022-12-31
References: Add references at CitEc
Citations:

Published in European Journal of Business Science and Technology, 2022, 8 (2), pp.190-216. ⟨10.11118/ejobsat.2022.012⟩

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

Related works:
Journal Article: Effect of Foreign Direct Investment on Economic Growth and Domestic Investment: Evidence from OECD Countries (2022)
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:hal:journl:hal-03969683

DOI: 10.11118/ejobsat.2022.012

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().