FDI, local Financial Markets, employment and poverty alleviation

Ashraf Mahmoud

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the precise links between foreign direct investment (henceforth, FDI) and poverty alleviation, where so far there are few studies attempted to analyze empirically this relationship. The FDI inflows vary across international borders, therefore FDI reduces poverty only under certain circumstances. “Roll out the red carpet for foreign investors and they will come” ; Countries with better financial systems, and healthy business environment are able to attract more FDI, exploit it more efficiently and reduce poverty. Empirical analysis using panel data of 62 countries, from 1996 to 2007, shows that FDI appears regularly to be a key source of employment for women in Non OECD countries and has a favorable effect on poverty reduction in the host country if interacted with monetary and nonmonetary variables.

Keywords: FDI; Financial market; Poverty; Employment (search for similar items in EconPapers)
JEL-codes: E24 F23 F36 F43 I32 O16 (search for similar items in EconPapers)
Date: 2010-03, Revised 2010-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/23608/1/MPRA_paper_23608.pdf original version (application/pdf)

Related works:
Working Paper: FDI, local Financial Markets, Employment and poverty alleviation (2010)
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:pra:mprapa:23608

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().