How does foreign direct investment affect economic growth?

Borensztein, Eduardo; Gregorio, José De; Lee, Jong-Wha

doi:10.1016/s0022-1996(97)00033-0

Cited by 3,986 publications

(2,614 citation statements)

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“…In this context, some scholars have focused on the FDI-growth nexus and discovered that FDI inflows made a positive contribution to the economic growth (e.g., see Borensztein et al, 1998;Li & Liu, 2005;Pegkas, 2015;Iamsiraroj & Ulubaşoğlu, 2015;Iamsiraroj, 2016). However, few scholars have investigated the interaction among greenfield and brownfield investments and economic growth and revealed different findings (e.g., see Calderon et al, 2004;Wang & Wong, 2009;Neto et al, 2010;Harms & Meon, 2014;Eren & Zhuang, 2015;Zvezdanović-Lobanova et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

Bayar

2017

Naše Gospodarstvo/Our Economy

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Global foreign direct investment flows in terms of greenfield and brownfield investments have increased during the recent three decades resulting from the accelerating globalization. The considerable increases in the flows of foreign direct investment have many eventualities for the national economies. This study investigates the mutual effects among greenfield and brownfield (mergers and acquisitions) investments and economic growth in Central and Eastern European Union countries during the 2003-2015 period employing panel data analysis. The findings revealed that both greenfield and brownfield investments had positive influence on the economic growth, but the influence of greenfield investments was found to be relatively higher. Furthermore, one-way causality was discovered from both greenfield and brownfield investments to the economic growth.

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Section: Literature Reviewmentioning

confidence: 99%

Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

Bayar

2017

Naše Gospodarstvo/Our Economy

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“…These spillover effects are occurred by the motility of skillful workers from foreign firm to local firms (Fosfuri, Motta, & Rønde, 2001;Glass & Saggi, 2002;Kaufmann, 1997). Usually the spillover effects occurs from linkages and these spillover have different kinds like when the foreign firm have a spillover on the host country's firm in the same manufacturing plant it is called horizontal spillover and if this spillover occurs in the upstream and downstream manufacturing plant then it is called vertical spillovers (Borensztein & De Gregorio, 1998).…”

Section: Introductionmentioning

confidence: 99%

“…The effect of FDI and trade on economic growth is varied in every country and different from time to time. In some countries, FDI has a positive effect on growth (Alshehry, 2015;Belloumi, 2014;Borensztein & De Gregorio, 1998;Umoh, Jacob, & Chuku, 2012). In some countries, FDI affect growth negatively (Ayanwale, 2007;Carkovic & Levine, 2002;Lian & Ma, 2013;Xu, 2000).…”

Section: Introductionmentioning

confidence: 99%

Does Foreign Direct Investment Lead to Economic Growth? Evidences from Asian Developing Countries

Ali¹,

Mingque²

2018

IJEF

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The study about the interrelationship between FDI and economic growth in the host country is one of the hottest discussions. Some of the studies have evidence and consider FDI as the growth driver and some others don't. This study attempted to scrutinize the causal association of FDI with GDP in Indonesia, India, Malaysia and Bangladesh for the years of 1990 to 2014. Cointegration test has been applied in this study which shows that there is a long-term interrelationship within FDI and economic growth and then applied the Granger causality (GC) test which is based on the VECM. The short run results show that there are no evidence of causality direction from FDI to GDP and vice versa, whereas the long run results show that there is a positive impact of FDI and other variables to the GDP but not significant, and from GDP and other variables to FDI there is a negative interrelationship but significant. The results show the ambiguous interrelationship between FDI and economic growth.

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“…Whereas Blomstrom et al (1994) found that education does not act for growth-effect of FDI, Borensztein et al (1998) argued that a positive growth-effect of FDI exists whether the educated workforce of the country can take advantage of technical spillovers associated with FDI. More precisely, they found a negative direct effect of FDI in countries with low levels of human capital.…”

Section: Introductionmentioning

confidence: 97%

Foreign Direct Investment, Macroeconomic Instability and Economic Growth in Mena Countries

et al. 2009

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How does foreign direct investment affect economic growth?

Cited by 3,986 publications

References 16 publications

Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

Does Foreign Direct Investment Lead to Economic Growth? Evidences from Asian Developing Countries

Foreign Direct Investment, Macroeconomic Instability and Economic Growth in Mena Countries

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