The Positive Causal Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship

Previous research has argued that foreign direct investment (FDI) exerts a positive and causal impact on the productivity of the recipient countries. However, we find that there is little macroeconomic evidence that FDI fosters productivity growth in recipient countries, including in those with high absorptive capacity, once we use an instrumental variables (IV) estimator robust to outliers.

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Year of publication:	2010-03
Authors:	Desbordes, Rodolphe ; Verardi, Vincenzo
Institutions:	Economics Department, University of Strathclyde
Subject:	Foreign Direct Investment \| Productivity \| Robust Regression

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 11-06 46 pages longPages
Classification:	C2 - Econometric Methods: Single Equation Models ; F2 - International Factor Movements and International Business ; O3 - Technological Change; Research and Development ; O4 - Economic Growth and Aggregate Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008876410