What is the evidence on the role of foreign direct investment in economics growth, and on the determinants of foreign direct investment flows?

Niall Douglas

MPRA Paper from University Library of Munich, Germany

Abstract: Firstly I shall investigate the determinants of FDI flows and why they have supplanted other forms of foreign investment in recent years. I shall then turn to their effects on GDP growth, examining the empirical evidence in the modern form and also that of during the British empire, where its FDI was far longer lasting and substantial (relative to world GDP) than at present. I shall then suggest a simple model to explain this behaviour, and finally extract a conclusion that FDI improves GDP growth in the short term, but has a negative effect in the long term.

Keywords: foreign direct investment; GDP growth; british empire; bretton woods; imlah (search for similar items in EconPapers)
JEL-codes: F21 F43 P45 (search for similar items in EconPapers)
Date: 2006-04
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13651

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