How Does Foreign Direct Investment Affect Growth in Developing Countries? An Empirical Investigation
Submitting Campus
Daytona Beach
Department
Economics, Finance, & Information Systems
Document Type
Article
Publication/Presentation Date
2010
Abstract/Description
This paper analyzes the effects of foreign direct investment on the economic growth of developing countries. The study uses annual data on a group of 85 developing countries covering Asia, Africa, and Latin America and the Caribbean for the period 1980-2007. We explore the hypothesis that foreign direct investment can promote growth in developing countries. We test this hypothesis using panel data series for foreign direct investment, while accounting for regional differences in Asian, African, Latin American, and the Caribbean countries as well as the differences in income levels. While the findings of previous studies are generally mixed, our results indicate that foreign direct investment has positive and significant effect on economic growth.
Publication Title
International Journal of Business and Finance Research
Publisher
IBFR Global
Scholarly Commons Citation
Ekanayake, E. M., & Ledgerwood, J. R. (2010). How Does Foreign Direct Investment Affect Growth in Developing Countries? An Empirical Investigation. International Journal of Business and Finance Research, 4(3). Retrieved from https://commons.erau.edu/publication/104
Included in
African Studies Commons, Asian Studies Commons, Growth and Development Commons, International Business Commons, International Economics Commons, Latin American Studies Commons
