FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH

Revista Tinerilor Economisti (The Young Economists Journal), 2007, vol. 1, issue 9, 94-97

Abstract: How does foreign direct investment triggered by foreign economic growth affect domestic economic activity? Estimates produced using foreign GDP growth rates for changes in foreign activity indicate that 10% greater foreign capital investment is associated with 2.2% greater domestic investment, and that 10% greater foreign employee compensation is associated with 4.0% greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated.

Keywords: foreign direct investment; economic growth; multinational firms (search for similar items in EconPapers)
JEL-codes: E22 O10 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2007:i:9:p:94-97

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