The impact of horizontal and vertical FDI on host's country economic growth

Beugelsdijk, Sjoerd; Smeets, Roger; Zwinkels, Remco C. J.

doi:10.1016/j.ibusrev.2008.02.004

Cited by 142 publications

(95 citation statements)

References 62 publications

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“…Beugelsdjijk et al [20] sustain that FDI influence on the economic growth of developing countries is ambiguous. Following foreign direct investment, remittances seem to represent the second most important financing source for the development of a state.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

et al. 2018

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This paper investigates the impact of Foreign Direct Investment (FDI) and remittances on Economic Growth (EG), using panel data of seven countries from Central and Eastern Europe with a Gross Domestic Product (GDP) per capita under 25,000 $. The empirical literature stressed the relationships between FDI and remittances and economic growth, and our purpose is to identify if there are significant relationships between FDI, remittances and economic growth in the seven analyzed countries. We find a positive impact of both FDI and remittances on GDP, but the influence of FDI is higher in all analyzed states, with accepting the assumption of ceteris paribus principles in limiting research caused by other possible determinants.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

et al. 2018

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“…These studies can be divided into those that argue for positive [10,[24][25][26][27] and negative [28][29][30][31][32][33] effects. In particular, studies that claim negative effects explain that FDI induces a crowd-out effect, because it hinders the development of local economies [29].…”

Section: Literature Reviewmentioning

confidence: 99%

The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

Park

2018

Sustainability

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This study examines the effect of the foreign direct investment (FDI)-human capital and R&D-human capital interactions (FDIHC and RDHHC) on Chinese development between 1991 and 2015. Based on endogenous growth theory, the study focuses on FDI, R&D, and human capital as important factors for sustained economic growth; the interactions among factors are set as the main variables affecting economic growth (GDP). In particular, this study attempts a two-step empirical analysis. First, data mining and semantic network analysis (SNA) are performed using variables as keywords; reliability and realism are reflected as variables. Second, using the vector error correction model (VECM), the study analyzes short and long run mutual influences between variables. The results show that, in data mining and SNA with FDI and R&D as keywords, words related to human capital show high frequency, centrality, and clustering. This finding implies that FDIHC and RDHHC have robustness as variables and can be used as interaction variables. According to the VECM results, FDIHC and RDHHC have positive influences on GDP in the short and long run. The results of a variance decomposition test show that RDHHC has strong mid-to long-run impacts on GDP, FDIHC, and R&D itself.

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“…Yao and Wei (2007) analyzed the gains in production by host countries and concluded that FDI is a major contributor to the economic growth of developing countries who are trying to 'catch up' with the more advanced economies of the world. Beugelsdijk, Smeets, and Zwinkels (2008) found that both vertical and horizontal FDI have a positive effect on the growth of the host country.…”

Section: Determinants and Benefits Of Fdimentioning

confidence: 99%

Relationship between Foreign Direct Investment and Country Population

Aziz¹,

Makkawi²

2012

IJBM

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The research on the factors that influence foreign direct investment (FDI) has ignored the role of population of a country. Such neglect seems to be motivated by the theoretical support for the assumption that large population is likely to be negatively related to economic growth. Based on a review of the latest research on the role of population in economic growth and the determinants of FDI, it was hypothesized that a country's population would be positively related to FDI. The data from 56 African and Asian countries supported the hypothesis.

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The impact of horizontal and vertical FDI on host's country economic growth

Cited by 142 publications

References 62 publications

The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

Relationship between Foreign Direct Investment and Country Population

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