Globalisation , Productivity and Technology Research Paper 2005 / 41 Foreign Direct Investment , Inequality and Growth
نویسنده
چکیده
This paper examines the interactions between Foreign Direct Investment (FDI), inequality, and growth, both from an empirical and a theoretical point of view. Using a panel of 119 developing countries, we observe that FDI promotes both inequality and growth, and tends to reduce the share of agriculture to GDP in the recipient country. We then set up a growth model of a dual economy in which the traditional (agricultural) sector uses a diminishing returns technology, while FDI is the engine of growth in the modern (industrial) sector. The main predictions of the model are consistent with the stylized facts observed in the data. JEL Classification: O1, F43.
منابع مشابه
Globalisation , Productivity and Technology Research Paper 2004 / 11 Foreign direct investment and local economic development : Beyond productivity spillovers by Holger Görg and Eric Strobl
We investigate how multinational companies can foster economic development of the host country at the micro level. Traditionally the empirical literature measuring spillovers to the host economy arising from foreign direct investment has focused on productivity spillovers, i.e., technological externalities. In this paper we emphasise that pecuniary externalities from multinationals can also be ...
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