EIB Working Papers 2020/02 - Impact of FDI on economic growth

The impact of foreign direct investment (FDI) on economic growth is affected by incomes levels and the quality of the institutional environment. This paper examines these relationships based on data for 111 countries, stretching back to 1980. It finds that FDI benefits do not accrue mechanically and...

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Autors principals: Baiashvili, Tamar, Gattini, Luca
Format: Online
Idioma:anglès
Publicat: European Investment Bank 2021
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Accés en línia:OCN: 1238206428
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author Baiashvili, Tamar
Gattini, Luca
author_browse Baiashvili, Tamar
Gattini, Luca
author_facet Baiashvili, Tamar
Gattini, Luca
author_sort Baiashvili, Tamar
collection Directory of Open Access Books
description The impact of foreign direct investment (FDI) on economic growth is affected by incomes levels and the quality of the institutional environment. This paper examines these relationships based on data for 111 countries, stretching back to 1980. It finds that FDI benefits do not accrue mechanically and evenly across countries. Instead, there is inverted-U shaped relationship between countries’ income levels and the size of FDI’s impact on growth. Moving from low to middle-income countries the effect gets larger. On the other hand, it diminishes again transitioning to high income countries. It also finds that absorptive capacity matters in channelling FDI effects. Within country income groups, countries with better-developed institutions relative to their peers benefit more from FDI in terms of growth.
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spelling doab-20.500.12854ir-323302025-07-30T10:21:13Z EIB Working Papers 2020/02 - Impact of FDI on economic growth Baiashvili, Tamar Gattini, Luca European Investment Bank Business & Economics Finance General thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry The impact of foreign direct investment (FDI) on economic growth is affected by incomes levels and the quality of the institutional environment. This paper examines these relationships based on data for 111 countries, stretching back to 1980. It finds that FDI benefits do not accrue mechanically and evenly across countries. Instead, there is inverted-U shaped relationship between countries’ income levels and the size of FDI’s impact on growth. Moving from low to middle-income countries the effect gets larger. On the other hand, it diminishes again transitioning to high income countries. It also finds that absorptive capacity matters in channelling FDI effects. Within country income groups, countries with better-developed institutions relative to their peers benefit more from FDI in terms of growth. 2021-02-10T13:58:06Z 2021-02-10T13:58:06Z 2020-12-15T13:28:51Z 2020 book OCN: 1238206428 https://library.oapen.org/handle/20.500.12657/43430 9789286145735 https://directory.doabooks.org/handle/20.500.12854/32330 eng open access image/jpeg image/jpeg image/jpeg n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/43430/1/external_content.pdf https://library.oapen.org/bitstream/20.500.12657/43430/1/external_content.pdf https://library.oapen.org/bitstream/20.500.12657/43430/1/external_content.pdf European Investment Bank European Investment Bank https://doi.org/10.2867/846546 https://doi.org/10.2867/846546 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c Knowledge Unlatched 9789286145735 Knowledge Unlatched (KU) European Investment Bank open access
spellingShingle Business & Economics
Finance
General
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
Baiashvili, Tamar
Gattini, Luca
EIB Working Papers 2020/02 - Impact of FDI on economic growth
title EIB Working Papers 2020/02 - Impact of FDI on economic growth
title_full EIB Working Papers 2020/02 - Impact of FDI on economic growth
title_fullStr EIB Working Papers 2020/02 - Impact of FDI on economic growth
title_full_unstemmed EIB Working Papers 2020/02 - Impact of FDI on economic growth
title_short EIB Working Papers 2020/02 - Impact of FDI on economic growth
title_sort eib working papers 2020 02 impact of fdi on economic growth
topic Business & Economics
Finance
General
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
topic_facet Business & Economics
Finance
General
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
url OCN: 1238206428
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