The DOI matches its Crossref record; 59 of the 59 references it cites were found in a registry or an index.
FDI, Productivity and Financial Development
Open accessAbstract
This paper examines the effect of foreign direct investment (FDI) on growth by focusing on the complementarities between FDI inflows and financial markets. In our earlier work, we found that FDI is beneficial for growth only if the host country has well‐developed financial institutions. In this paper, we investigate whether this effect operates through factor accumulation and/or improvements in total factor productivity (TFP). Factor accumulation – physical and human capital – does not seem to be the main channel through which countries benefit from FDI. Instead, we find that countries with well‐developed financial markets gain significantly from FDI via TFP improvements. These results are consistent with the recent findings in the growth literature that shows the important role of TFP over factors in explaining cross‐country income differences.
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Cites
Finance and Growth: Schumpeter Might Be Right
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How does foreign direct investment affect economic growth?
Borensztein, E., De Gregorio, J., & Lee, J.-W. (1998) · Journal of International Economics · doi:10.1016/s0022-1996(97)00033-0 · Cited by 6,038
Financial intermediation and growth: Causality and causes
Levine, R., Loayza, N., & Beck, T. (2000) · Journal of Monetary Economics · doi:10.1016/s0304-3932(00)00017-9 · Cited by 4,414
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Finance and the sources of growth
Beck, T., Levine, R., & Loayza, N. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(00)00072-6 · Cited by 3,711
Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
Aitken, B. J., & Harrison, A. E. (1999) · American Economic Review · doi:10.1257/aer.89.3.605 · Cited by 3,621
Finance, entrepreneurship and growth
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Stock Markets, Banks, and Economic GrowthPreprint
Levine, R. E., & Zervos, S. (1996) · RePEc: Research Papers in Economics · Cited by 3,155
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Stock Markets, Banks, and Economic Growth
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Cited by
FDI, Multinationals, and Structural Change in Developing Countries
Pineli, A., Narula, R., & Belderbos, R. (2021) · New Perspectives on Structural Change · doi:10.1093/oso/9780198850113.003.0021 · Cited by 19
Metadata
- Authors
- Alfaro, L., Kalemli‐Ozcan, S., & Sayek, S.
- Venue
- The World Economy
- Publisher
- Wiley
- Published
- 2009-01
- Volume
- 32
- Issue
- 1
- Pages
- 111-135
- ISSN
- 0378-5920 (ISSN-L)
- 1467-9701
- OpenAlex
- W2054620562
- Cited by
- 320
- References
- 59
- FWCI
- 34.68
- Type
- journal article
- Language
- en
- Open access
- bronze
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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