FDI and growth

Bhattarai, Keshab

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. This paper also contributes in relating micro and macro aspects of the impact of FDI on economic growth and provides empirical support to the existing literature.

Citation

Bhattarai, K. (2016). FDI and growth. Advances in Management and Applied Economics, 6(2), 1-23

• Journal Article Type: Article
• Acceptance Date: Jan 24, 2016
• Online Publication Date: Mar 15, 2016
• Publication Date: 2016
• Deposit Date: Apr 4, 2016
• Publicly Available Date: Apr 4, 2016
• Journal: Advances in management and applied economics
• Print ISSN: 1792-7544
• Electronic ISSN: 1792-7552
• Publisher: Scienpress
• Peer Reviewed: Peer Reviewed
• Volume: 6
• Issue: 2
• Pages: 1-23
• Keywords: FDI, Economic growth, OECD
• Public URL: https://hull-repository.worktribe.com/output/434806
• Publisher URL: http://www.scienpress.com/journal_focus.asp?main_id=55&Sub_id=IV&Issue=1747
• Additional Information: Copy of article first published in: Advances in management and applied economics, 2016, v.6, issue 2