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DOMESTIC INVESTMENT AND FDI IN DEVELOPING COUNTRIES: THE MISSING LINK

MARC LAUTIER|FRANÇOIS MOREAUB
경제연구소 (Hanyang Economic Research Institute)|2012.09|Journal of Economic Development|제37권 제3호|pp. 1-23|DOI 10.35866/caujed.2012.37.3.001

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Foreign Direct InvestmentDeveloping CountriesIndustrial PolicyDomestic Investment
주제분류경제학

초록

This paper investigates the impact of domestic investment on Foreign Direct Investment (FDI) to Developing Countries (DC). While the literature has provided numerous studies on the effects of FDI on growth and investment in host-country, very little is known about how domestic investment itself affects FDI inflows. The paper attempted to fill this gap. Evidence from a large cross-country sample (68 countries), over a long time period (1984-2004), shows that lagged domestic investment has a strong influence on FDI inflows in the host-economy, implying that domestic investment is a strong catalyst for FDI in DC and that Multinational Companies do follow economic development. This result suggests that investment promotion policies directed towards domestic firms will be efficient to attract foreign investors as well.

Abstract

This paper investigates the impact of domestic investment on Foreign Direct Investment (FDI) to Developing Countries (DC). While the literature has provided numerous studies on the effects of FDI on growth and investment in host-country, very little is known about how domestic investment itself affects FDI inflows. The paper attempted to fill this gap. Evidence from a large cross-country sample (68 countries), over a long time period (1984-2004), shows that lagged domestic investment has a strong influence on FDI inflows in the host-economy, implying that domestic investment is a strong catalyst for FDI in DC and that Multinational Companies do follow economic development. This result suggests that investment promotion policies directed towards domestic firms will be efficient to attract foreign investors as well.

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관련 논문AI추천

Empirical Evidence on the Relationship between Foreign Direct Investment and Economic Growth: A Cross-Country Exploration in AsiaKumarjit Mandal, Samrat Roy경제연구소 · Seoul Journal of Economics2012 · 제25권 제4호FOREIGN DIRECT INVESTMENT, ECONOMIC GROWTH, AND POLITICAL INSTABILITYKEVIN WILLIAMS경제연구소 · Journal of Economic Development2017 · 제42권 제2호FOREIGN CAPITAL FLOWS, FINANCIAL DEVELOPMENT AND GROWTH IN SUB-SAHARAN AFRICAAFEES SALISU, BELLO AJIDE, OLUWATOSIN ADENIYI경제연구소 · Journal of Economic Development2015 · 제40권 제3호ANOTHER LOOK AT THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN MENA COUNTRIES: AN EMPIRICAL INVESTIGATIONMOISE G. SIDIROPOULOS, Sufian Eltayeb Mohamed경제연구소 · Journal of Economic Development2010 · 제35권 제2호GROWTH CONSEQUENCES OF FOREIGN DIRECT INVESTMENT: SOME RESULTS FOR TURKEYALI F. DARRAT, JAYANTA SARKAR경제연구소 · Journal of Economic Development2009 · 제34권 제2호Impact of FDI on economic growth in developing countries: The Role of Human CapitalMuhammad Ramzan, Sanghack Lee, Sumbal Fatima, Zhilun Jiao경제연구소 · Seoul Journal of Economics2019 · 제32권 제3호

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