In search of FDI-led growth in developing countries: The way forward

Herzer, Dierk; Klasen, Stephan; Nowak‐Lehmann, D Felicitas

doi:10.1016/j.econmod.2007.11.005

Cited by 294 publications

(211 citation statements)

References 39 publications

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“…In the case of Philippines, no relationship between the two variables was found. This research finding strengthens the support for the research by Aga (2014) in Turkey and Herzer and Klasen (2008) which revealed no causal relationship in 16 out of 28 countries.…”

Section: Causality Testsupporting

confidence: 88%

“…Several of recent researchs fall into the similar conclusion. However, Herzer and Klasen (2008) examined the pattern of the relation between two variables in 28 countries. The results showed that only seven countries cointegrated in the long term.…”

Section: Introductionmentioning

confidence: 99%

“…The different pattern of the relationship between those two variables is as a result of the stability of macroeconomic conditions, differences in economic structure (Zhang, 2001), investment climate and investment policy (Herzer and Klasen, 2008).…”

Section: Causality Testmentioning

confidence: 99%

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Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

Supriyadi

Satria

2017

JIAE

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The research examines the relationship between Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) for ASEAN-5 countries between the periods of 1980 to 2014. The study uses a Toda-Yamamoto granger causality model to test the causality between the FDI and the GDP. The results show that the ASEAN countries are differently in responding the impacts of FDI to the GDP. In general, the FDI leads to GNP in Singapore and Thailand while, in Indonesia and Malaysia, the GNP leads to FDI. In the case of Philippines, there is no causality relationship between the two variables found.

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Section: Causality Testsupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

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Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

Supriyadi

Satria

2017

JIAE

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“…Carkovic and Levine [10] used a panel dataset covering 72 developed and developing countries and concluded that there is no robust link running from inward FDI to the host country's economic growth. Herzer et al [11] challenged the belief that FDI has a positive impact on economic growth in developing countries. This paper used co-integration techniques for 28 countries and suggested that there is no causal relation between the FDI and GDP growth rate.…”

Section: Literature Overviewmentioning

confidence: 99%

Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

Yue

Yang

2016

Sustainability

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Foreign Direct Investment (FDI) not only affects the economic growth but also affects the environmental protection of the host country. With China's background of pursuing green growth, we need to consider the performance of FDI from the economic and environmental benefit aspects. On this basis, using slacks-based measure directional distance function (SBMDDF) to build up green growth efficiency, economic efficiency and environmental efficiency indexes, empirical research on FDI in 104 Chinese cities from 2004 to 2011 has shown that: (1) Different cities have differences in their green growth efficiency. Shenzhen city is always efficient in green economic growth. (2) Overall, FDI is positive on Chinese cities' green growth. (3) When the green growth efficiency is broken down into economic efficiency and environmental efficiency, FDI promotes China's economic green growth through both environmental benefits and economic benefits. (4) The effect of FDI differs in different sectors. FDI in the emission-intensive sector promotes green efficiency mainly through the improvement of economic efficiency. FDI in the non-emission-intensive sector promotes economic efficiency, environmental efficiency and green efficiency.

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“…(Ernst and Young, 2015). The mismatch between FDI inflows and jobs created partially confirm the fact that FDI activities only create considerable employment if they are labour intensive (Herzer et al, 2008;Kim, 2009). China has the world's largest manufacturing workforce with more than 125 million people, of which 85 million are in labour intensive industries.…”

Section: The Influence Of Chinese Investment On Africa's Economic Devmentioning

confidence: 95%

Chinese investment in Africa: how the New Normal can leverage Agenda 2063 for sustainable economic co-operation

Zhang¹,

Kangombe²

2016

AEAA

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Since the 1950s, China-Africa co-operation thrived at the back of China's rapid and accelerated growth. After the financial crisis of 2007-2009 however, and especially since 2014, the realities of China's New Normal which requires internal structural transformation has created the need for outward structural changes with partners. This paper attempts to provide the direction for Chinese investment in Africa under the new economic growth model by analysing the flow of Chinese investment to Africa and the role in economic development. Findings show that market and resource seeking principles are still driving Chinese investment on the continent with opportunities and challenges going forward. An 'integration-interaction' framework is used to demonstrate how Chinese investment in Africa can be streamlined for improved and effective mutual development.

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In search of FDI-led growth in developing countries: The way forward

Cited by 294 publications

References 39 publications

Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

Model of Causality Between Fdi and Gross Domestic Product on Asean-5 Countries From 1980-2014

Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

Chinese investment in Africa: how the New Normal can leverage Agenda 2063 for sustainable economic co-operation

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