FDI & economic growth in selected Country groups for (1989-2018)
DOI:
https://doi.org/10.25007/ajnu.v9n3a775Abstract
Theoretically, it is heavily believed that FDI is as a source of development, modernization, income, and employment growth and that FDI boosts the productivity of host countries and promotes economic growth. This paper examines, within a growth theory framework, the role which foreign direct investment (FDI) plays in the growth process in the context of different income group countries characterized by their per capita income. The paper tests (using time series data relating High, Middle- and Low-income countries) the hypothesis adopted is that FDI, enhance economic growth. The estimated indicators show evidence of rejecting Null hypothesis in the case of High- and Middle-income group countries but, vice versa the Null hypothesis is accepted for Low-income group countries.
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References
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2. Barrel R. and Nigel P., “Foreign Direct Investment, Technological Change, and Economic Growth within Europe”, the Economic Journal, Vol. 107, No. 445 (Nov., 1997), pp. 1770-1786.
3. Barro R. J., “Economic Growth in a Cross Section of Countries”, The Quarterly Journal of Economics, Vol. 106, No. 2. (May, 1991), pp. 407-443.
4. Balasubramanyam V. N., et el, “Foreign Direct Investment and Growth in EP and is Countries” The Economic Journal, Vol. 106, No. 434 (Jan., 1996), pp. 92-105.
5. Bezić “Technology transfer, FDI and economic growth in the EU transition countries and the republic of Croatia” Ekon. MISAO Praksa DBK. GOD XXIII. (2014.) BR. 2. (463-482).
6. Blomström M. &Koko A., “The Impact of Foreign Investment on Host Countries: A Review of the Empirical Evidence”, Copy of World Bank Policy Research Working Paper No. 1745, Stockholm School of Economics, March 1997,
7. Blomström, M., & Koko A. “The Economics of Foreign Direct Investment Incentives” NBER Working Paper No. 9489, February 2003, JEL No. J23, O12.
8. Blomström, M., & Sjöholm, F. (1999). “Technology transfer and spillovers: does local participation with multinationals matter?” European Economic Review,43(4),915-923.
9. Ciccone A. & Jarocinski M., “Determinants of Economic Growth: Will Data Tell?” European Central Bank, working paper, No 852, January, 2008.,[email protected].
10. Esso L., Long-Run Relationship and Causality between Foreign Direct Investment and Growth: Evidence from Ten African Countries” International Journal of Economics and Finance, Vol. 2, No. 2; May 2010, PP 168-177.
11. Ghazali A.,” Analyzing the Relationship between Foreign Direct Investment Domestic Investment and Economic Growth for Pakistan” International Research Journal of Finance and Economics, Issue 47 (2010),PP 123-131.
12. Granger and Newbold “Spurious regressions in Econometrics” Journal of Econometrics 2 (1974) 111-120.
13. 13.Grier & Tullock” An empirical analysis of cross-national” Journal of Monetary Economics 24 (1989) 259-276.
14. Gujarati D.,” Basic econometrics” 4th ed., McGraw-Hill Higher Education, USA,2003.
15. 15.Hezron M.et el, “Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector” Journal of Innovation and Entrepreneurship (2016).pp 2-25.
16. Horas D., “Foreign Direct Investment and Technology Transfer: Knowledge Spillover in the Manufacturing Sector in Indonesia” Global Business Review, 18(1) 57–70,2017.PP 57-70.
17. Immurana M. et el,” FDI, Economic Growth and Service Sector Value Additions in Ghana” International Journal of Academic Research in Business and Social, Dec 2015, Vol. 5, No. 12
18. Kisswani K.M. et el, “The impact of FDI inflows on real GDP in Estonia: Evidence from a cointegration approach and causality test” The Journal of Developing Areas, Volume 49, Number 4, Fall 2015, pp. 25-40.
19. Kormendi, C. and Meguire P. G.” Macroeconomic determinants of growth: Cross -country evidence” Journal of Monetary Economics. 1985,16:141-163.
20. Lamine M.& Yang D., “Foreign Direct Investment Effect on Economic Growth:
21. Evidence from Guinea Republic in West Africa” International Journal of Financial Research, Vol. 1, No. 1; December 2010.
22. Lasbrey A.” Foreign Direct Investment and Economic Growth: Literature from 1980 to 2018”
23. International Journal of Economics and Financial Issues, 2018, 8(5), 309-318.
24. Leandro et el, “The relationship between FDI & Economic growth & Financial Development in Capo Verde” International Journal of Economics and Finance; Vol. 9, No. 5; 2017.
25. Melnyk L., et el, “The impact of foreign direct investment on economic growth: case of post communism transition economies” Problems and Perspectives in Management, Volume 12, Issue 1, 2014,pp17-24.
26. Najaf A. &Ye M., “Does FDI lead to economic growth? Evidences from Asian Developing Countries” International Journal of Economics and Finance; Vol. 10, No. 3; 2018.
27. Newman C., “Technology transfers, foreign investment and productivity spillovers” European Economic Review76(2015)168–187.
28. OECD, “Foreign Direct Investment for Development” France, 2002.
29. Okoro, C. O., et el, “Effect of International Capital Inflows on Economic Growth of Nigeria” International Journal of Science and Management Studies (IJSMS), Volume: 02 Issue: 01, January to February 2019.pp 13-25.
30. Sarbapriya R., “Impact of Foreign Direct Investment on Economic Growth in India: A Co integration Analysis: Advances in Information Technology and Management (AITM), Vol. 2, No. 1, 2012, pp 187-200.
31. Shalini T.& Shaila S.,“Integration of GDP and FDI in Economies at Different Stages of Growth” Theoretical Economics Letters, 2018, PP 2199-2219.
32. Solow R. M., “A Contribution to the Theory of Economic Growth” the Quarterly Journal of Economics, Vol. 70, No. 1 (Feb., 1956), pp. 65-94
33. Stanisic N.,“Do Foreign Direct Investments increase the economic growth of southern eastern European economies?” South-Eastern Europe Journal of Economics 1 (2008) 29-38.
34. Sultanuzzaman M.R. & Wang B.,“The impact of foreign direct investment inflows on economic growth: Evidence from Bangladesh” Journal of Business and Retail Management Research (JBRMR), Vol. 12 Issue 2 · January 2018, PP211-223.
35. Todaro M. & Stephen C. S., “Economic development”12Ed.,2015 Library of Congress Cataloging-in-Publication Data, USA,2015.
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Published
2020-07-17
How to Cite
Hassan, K. G. (2020). FDI & economic growth in selected Country groups for (1989-2018). Academic Journal of Nawroz University, 9(3), 196–207. https://doi.org/10.25007/ajnu.v9n3a775
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