Foreign Direct Investment, Economic Performance and Trade Liberalisation

Greenaway, David; Sapsford, David; Pfaffenzeller, Stephan

doi:10.1111/j.1467-9701.2007.00887.x

Cited by 26 publications

(20 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This variable has been significant in FDI inflows to many SSA countries with conscious policy to remove barriers to trade, which could only open up opportunities for FDI. Greenaway, Sapsford, & Pfaffenzeller (2007) assert that the more open the trade policy, the greater the economy's gravitational attraction to FDI. The recent scrutiny of the relationship between trade and investment is because the theory of trade and the theory of FDI have different origins, aims, and objectives.…”

Section: The Model Data and Variables Definitionsmentioning

confidence: 99%

Political and institutional impediments to foreign direct investment inflows to sub‐Saharan Africa

Cleeve

2012

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

This article analyzes the role of institutional factors and political stability in the inflow of foreign direct investment (FDI) to sub-Saharan Africa (SSA). It uses cross-sectional time series data on 40 SSA countries, and an econometric model of 12 institutional (including political risk) variables, after controlling for both traditional and policy variables. Given the role of foreign direct investment in the development process, one of the most important challenges facing Africa is how to attract an improved share of the increasing flow of world FDI. Africa's image as a high-risk investment region has to be dispelled, as the flow of FDI is highly sensitive to economic and political risks. Fiscal incentives, the most popular instrument for attracting FDI in Africa, have failed to deliver the expected increase in FDI inflows. We believe that what is needed is not only political and macroeconomic stability but also institutional credibility. The objective of this article, therefore, is to investigate the impact of institutional factors and political risk on the inflow of FDI to SSA. The results reveal that institutional factors are important to attract FDI into SSA.

show abstract

Section: The Model Data and Variables Definitionsmentioning

confidence: 99%

Political and institutional impediments to foreign direct investment inflows to sub‐Saharan Africa

Cleeve

2012

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

show abstract

“…There are several reasons why foreign investors might prefer faster growing markets. For example, cost efficiency of production and the realization of economies of scale and scope in production are closely linked with market size (Blonigen et al 2007;Filippaios et al 2003;Greenaway et al 2007;Vernon 1966;Wang and Swain 1995). Other things equal, a growing market can be attractive to FDI because of the likelihood that a larger market will enable a more efficient scale of production (Agosin and Machado 2007;Carstensen and Toubal 2004).…”

Section: Economic Growth As An Fdi Attractormentioning

confidence: 99%

Does Growth Attract FDI?

Iamsiraroj

Doucouliagos

2015

Economics

View full text Add to dashboard Cite

FDI is seen widely as a vital source of investment, technology transfer, and growth. The factors that attract FDI have been a longstanding source of debate. The authors present a comprehensive assessment of the accumulated evidence on one factor, the success of economic growth in attracting FDI. Meta-regression analysis is applied to 946 estimates from 140 empirical studies. The results confirm that, on average, economic growth is an important determinant of FDI. Overall, there is a positive correlation between growth and FDI and this is much larger among single country case studies than with cross-country analysis.

show abstract

“…al 1996). Greenaway et al (2007) tested these hypotheses with data from 1990 to 2000 on a larger sample and confirmed that they still hold. Not only that, they also provided information that even within the sample of open economies, the ones with the highest levels of openness were more receptive to foreign capital.…”

Section: Introductionmentioning

confidence: 69%

The controversy about foreign direct investment as a source of growth for the mexican economy

Oladipo

Galán²

2009

RPD

View full text Add to dashboard Cite

Este trabajo investiga de qué forma la inversión extranjera directa (IED) ha afectado realmente el crecimiento económico de México. Dado que se han hecho esfuerzos que ponen un énfasis especial en la estrategia de industrialización hacia fuera, ponemos a prueba las hipótesis de crecimiento dirigido por la IED y las exportaciones en México utilizando un modelo multivariado con vectores autorregresivos. Los resultados muestran que la evidencia para el crecimiento dirigido por la IED no es tan fuerte como la evidencia para el crecimiento dirigido por las exportaciones. Sin embargo, el TLCAN ha permitido mejorar los efectos potenciales de los flujos extranjeros. Las estimaciones revelan que el capital privado y extranjero tienen efectos estadísticamente significativos sobre el crecimiento. Las manufacturas, la IED, las exportaciones, el trabajo y el capital humano mostraron efectos positivos sobre la economía.

show abstract

Foreign Direct Investment, Economic Performance and Trade Liberalisation

Cited by 26 publications

References 7 publications

Political and institutional impediments to foreign direct investment inflows to sub‐Saharan Africa

Political and institutional impediments to foreign direct investment inflows to sub‐Saharan Africa

Does Growth Attract FDI?

The controversy about foreign direct investment as a source of growth for the mexican economy

Contact Info

Product

Resources

About