FDI spillovers, financial markets, and economic development

  • 32 Pages
  • 3.81 MB
  • English

International Monetary Fund, African Department , Washington, D.C
Investments, Foreign -- Econometric models., Economic development -- Econometric models., Capital movements -- Econometric mo
StatementLaura Alfaro ... [et al.].
GenreEconometric models.
SeriesIMF working paper -- WP/03/186
ContributionsAlfaro, Laura., International Monetary Fund. African Dept.
The Physical Object
Pagination32 p. :
ID Numbers
Open LibraryOL19402504M

Title: FDI Spillovers, Financial Markets, and Economic Development - WP/03/ Created Date: 10/10/ PM. FDI Spillovers, Financial Markets and Economic Development Article (PDF Available) in IMF Working Papers 03(03/) January with Reads How we measure 'reads'.

Downloadable. This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability.

Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability.

Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed by: 6. Foreign Direct Investment in Emerging Markets CENTRE FOR NEW AND EMERGING MARKETS LONDON BUSINESS SCHOOL No.

15 FDI Spillovers in Emerging Markets: A Literature Review and New Perspectives By Klaus E. Meyer Copenhagen Business School Draft, March Do not quote CNEM is a Development Research Centre supported by. Keywords: FDI spillovers, backward linkages, financial development, economic growth.

∗An earlier version of this paper circulated under the title “FDI Spillovers, Financial Markets and Economic De-velopment.” Corresponding author: Laura Alfaro, Harvard Business School.

Foreign Direct Investment, Finance, and Economic Development Laura Alfaro and Jasmina Chauvin∗ Chapter for Encyclopedia of International Economics and Global Trade September Research has sought to understand how foreign direct investment affects host economies.

This paper reviews the empirical literature, specifically addressing the. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. Yet, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities.

National policies and the international investment. Foreign direct investment (FDI) is argued to play a pivotal role in accelerating economic growth (EG) of a host country especially in developing and. Organization for Economic Co-operation and Development countries.

The papers reviewed have a good representation of diverse empirical works of over three decades. John Rand examines the indirect "spillover effects" from foreign direct investment (FDI), which has been praised as an important development tool, particularly for countries at low levels of.

There is now a significant body of economic theory on FDI. Most theoretical models on FDI and spillovers lie within the framework of industrial organization theory.

Download FDI spillovers, financial markets, and economic development FB2

These models only started to emerge from the late s. Dependency Theory and Impact of Foreign Investment in Host Countries. Fig. 1, which shows data on FDI and financial development, provides motivation for our use FDI as a share of GDP and a measure of financial development introduced by Beck et al., a, Beck et al., b for the period – As Fig.

1 suggests, there is a positive relationship between the two variables. However, it is also apparent that there is a wide variation in both. We explore whether countries with better financial systems can exploit FDI more efficiently. Empirical analysis, using cross-country data between andshows that FDI alone plays an ambiguous role in contributing to economic growth.

However, countries with well-developed financial markets gain significantly from FDI. Research shows that an increase in FDI leads to higher growth rates in financially developed countries compared to rates observed in financially poor countries.

Local conditions, such as the development of financial markets and the educational level of a country, affect the impact of FDI on economic growth. tion to the role of foreign direct investment (FDI) in the productivity of domestic firms in emerging markets.

A widely accepted argument in this line of research is that foreign firms from developed coun-tries typically enjoy technological superiority and Keywords: FDI spillovers; the diversity of FDI country. Prior literature on foreign direct investment (FDI) spillovers has mainly focused on how the presence of FDI affects the productivity of domestic firms.

In this study, we advance the literature by examining the effect of the diversity of FDI country origins on the productivity of domestic firms.

This chapter explores the prospects for technology transfer and spillovers from inward investment in the setting of emerging markets.

The chapter builds on the large literature on spillovers to explore the drivers of such effects. First, it is necessary to explore why the analysis of technology transfer between inward investors and local firms is important in the context of emerging market. Published: Alfaro, Laura, Areendam Chanda, Sebnem Kalemli-Ozcan, and Selin Sayek.

"Does Foreign Direct Investment Promote Economic Growth. Exploring the Role of Financial Markets on Linkages?" Journal of Development Econom 2 (March ) Users who downloaded this paper also downloaded* these. In this research, we examine the role of financial development, FDI, democracy and political instability on economic growth in West Africa.,The study uses the dynamic fixed effects technique on the secondary data obtained from to ,Our empirical findings suggest that even though no significant relationship is established in the short run, the long-run coefficient of FDI is found to be.

Developing countries take Foreign Direct Investment (FDI) as leverage for economic growth and development as a result of FDI technology spillovers.

However, the effect of FDI inflows on economic growth of host countries is conditional on the abilities of those countries in absorbing and accumulating external knowledge.

The related literature paid particular attention to the role of the. development of local financial markets, and other local conditions play an important role in allowing the positive effects of FDI to materialize.

Blomstrom and Kokko () concluded from their. "Foreign direct investment, financial development and economic growth," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages Hermes, Niels & Lensink, Robert, " Foreign direct investment, financial development and economic growth," Research Report 00E27, University of Groningen, Research Institute SOM.

Njangang Henri, Nembot Ndeffo Luc, Nawo Larissa, The Long‐run and Short‐run Effects of Foreign Direct Investment on Financial Development in African Countries, African Development Review, /, 31, 2, (), (). sustainability Article An Empirical Research of FDI Spillovers and Financial Development Threshold Effects in Different Regions of China Hui Wang 1,2 and Huifang Liu 1,2,* 1 School of Humanities and Economic Management, China University of Geosciences, BeijingChina; [email protected] or [email protected] A division of the Financial Times, fDi Intelligence specialises in all areas relating to foreign direct investment (FDI) and investment promotion.

In addition to fDi Markets, the full fDi Intelligence suite of tools includes: fDi Benchmark – The only online tool to benchmark the competitiveness of countries and cities in more than 65 sectors.

Ozawa, T. () Foreign direct investment and economic development. Transnational Corporations 1(1): 27– Rodriguez-Clare, A. () Multinationals, linkages and economic development. American Economic Review – Scott-Kennel, J.

() Foreign direct investment and local linkages: an empirical investigation.

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Human Development and Foreign Direct Investment in Developing Countries: The Influence of FDI Policy and Corruption World Development, Vol. 38, No. 12 The Impact of Foreign Ownership, Local Ownership and Industry Characteristics on Spillover Benefits from Foreign Direct Investment in China.

for edited book on Foreign Direct Investment, Interamerican Development Bank-IADB.) development.4 Knowledge spillovers and backward and forward linkages between foreign and local financial markets (Alfaro et al., sector characteristics. Economies, an international, peer-reviewed Open Access journal.

Dear Colleagues, This Special Issue will consider original empirical research and review articles focusing on whether foreign direct investment (FDI), an essential element of nearly all states’ lasting development strategies, really results in economic growth.

Foreign Direct Investment (FDI) enables economic growth, job creation, and poverty reduction. Countries that are more open to trade and investment tend to be more productive and grow faster.

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Policymakers seek to attract FDI to create jobs, bring in cutting edge knowledge and technology, connect to global value chains, and diversify and upgrade.

Over the years, foreign direct investment (FDI) has not only promoted rapid economic growth in China, but also affected the country’s environmental quality through technology spillover.

This paper tests the variables that may affect the ability of green innovation by using the Granger causality test. It extracts the variables passed the test as input variables, selects the number of patents. The main focus of the book is on the role and nature of China’s financial system and its ability to transform enterprise and household behaviour and the performance of investment finance, notably in the context of a two-way flow of foreign direct investment.

This paper argues that foreign direct investment (FDI) may increase the vulnerability to capital flow shocks of economies with credit market imperfections. Because of worse access to financial markets, wages in domestic firms carry higher default risk than wages in foreign ones.