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Inappropriate Pooling of Wealthy and Poor Countries in Empirical FDI Studies
Open accessAbstract
This paper examines the question of whether less-developed countries' (LDCs') experiences with foreign direct investment (FDI) systematically different from those of developed countries (DCs).We do this by examining three types of empirical FDI studies that typically do not distinguish between LDCs and DCs in their analysis.First, we find that the underlying factors that determine the location of FDI activity across countries vary systematically across LDCs and DCs in a way that is not captured by current empirical models of FDI.Second, the effect of FDI on economic growth is one that is only supported for LDCs in the aggregate data, not DCs.Third, the evidence suggests that FDI is much less likely to crowd out (more likely to crowd in) domestic investment for LDCs than DCs.
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Dyadic military conflict, security alliances, and bilateral FDI flows
Li, Q., & Vashchilko, T. (2010) · Journal of International Business Studies · doi:10.1057/jibs.2009.91 · Cited by 280
Does foreign aid mitigate the adverse effect of expropriation risk on foreign direct investment?
Asiedu, E., Jin, Y., & Nandwa, B. (2009) · Journal of International Economics · doi:10.1016/j.jinteco.2009.03.004 · Cited by 158
The economic benefits of justice
Appel, B. J., & Loyle, C. E. (2012) · Journal of Peace Research · doi:10.1177/0022343312450044 · Cited by 52
FDI, Multinationals, and Structural Change in Developing Countries
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Metadata
- Authors
- Blonigen, B., & Wang, M.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2004-03
- OpenAlex
- W2157259619
- Cited by
- 331
- References
- 26
- Type
- report
- Language
- en
- Open access
- green
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