FDI, investment and growth in OECD countries

Keshab Bhattarai and Subrata Ghatak ()
Additional contact information
Subrata Ghatak: Kingston University London

No 2010-5, Economics Discussion Papers from School of Economics, Kingston University London

Abstract: Multinational corporations [MNCs] usually engage in foreign direct investment [FDI] to take cost advantages of producing abroad to negate the need for licensing or subsidiary production. At the macro level, FDI accounts for significant proportions of MNCs total investment and has discernible impacts on economic growth. This is shown theoretically in the growth model where FDI complements domestic capital. Our model predictions tested favourably against panel data analysis of FDI on growth for thirty OECD countries from 1990 to 2004. This paper also contributes to integrating micro and macro aspects of the impact of FDI on economic growth and provides empirical support to existing literature.

Keywords: FDI; Economic Growth; OECD (search for similar items in EconPapers)
JEL-codes: F23 O40 O57 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-12-31
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://eprints.kingston.ac.uk/16240/ Full text (text/html)

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:ris:kngedp:2010_005

Access Statistics for this paper

More papers in Economics Discussion Papers from School of Economics, Kingston University London Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Ingianni ().