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Article: FDI and economic growth in developing economies: how relevant are host-economy and industry characteristics?(foreign direct investment)
- Article from:
- Transnational Corporations
- Article date:
- December 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 The United Nations accepts no responsibility for the accuracy or suitability of the presentation of these materials in this publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It is surprisingly hard to come by conclusive evidence supporting the widely held view that developing countries should draw on foreign direct investment to spur economic development. Virtually all empirical studies on the subject have found the impact of foreign direct investment on growth to be ambiguous because of the highly aggregated data they have used. These aggregations have blurred the differences between resource-seeking, market-seeking and efficiency-seeking foreign direct investment, and have ignored the compatibility of the different types of foreign direct investment with economic conditions prevailing in individual host economies. Analyzing ...
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