We analyse the Granger causal relationships between foreign direct investment (FDI) and GDP in a sample of 31 developing countries covering 31 years. Using estimators for heterogeneous panel data we find bi-directional causality between the FDI-to-GDP ratio and the level of GDP. FDI has a lasting impact on GDP, while GDP has no longrun impact on the FDI-to-GDP ratio. In that sense FDI causes gr...

The nineties onwards has witnessed strong economic performance and outward FDI from a number of developing countries including India. Until now literature has tried to explain the factors influencing outward investment from developed countries perspective. It is difficult to construe how the factors influencing outward investment from developed countries would explain the behaviour of developin...

The problem of optimal sensor placement for FDI consists in determining the set of sensors that minimizes a pre-defined cost function satisfying at the same time a pre-established set of FDI specifications for a given set of faults. This paper recalls three model-based optimal sensor location approaches: an Incremental search, a Heuristic search and a Binary Integer Linear Programming (BILP) fo...

Foreign Direct Investment (FDI) has great impact on the development of a developing country like Bangladesh. The foreign investor seeks for new sources of investment where the developing country seeks for new sources of fund to develop the country. The FDI does not only bring sources of fund in a developing country but also new technology in a developing country. The FDI has the important role ...

Our study investigates the firmand country-specific factors that affect the link between foreign direct investment (FDI) and trade. Specifically, we address the questions “do countryand firmspecific characteristics matter in Japanese FDI trade links?” and “do the counts and values of FDI that are often alternatively used in the empirical work convey the same message about this link?” Empiricall...

This paper examines the determinants of FDI from U.S. and Japan in China using the provincial data set from 1991 to 1997. The results of the regression analyses are further compared to those of the aggregated FDI as a benchmark case. The study found various similarities and differences in the importance and the magnitudes of the determinants of FDI among three FDI sources. It is shown that both...

Evidence on international capital ‡ows suggests that foreign direct investment (FDI) is less volatile than other ...nancial ‡ows. To explain this ...nding, I model international capital ‡ows under the assumptions of imperfect enforcement of ...nancial contracts and inalienability of FDI. Imperfect enforcement of contracts leads to endogenous ...nancing constraints and the pricing of default ris...

It is a widely held belief that foreign direct investment (FDI) has a positive effect on economic growth. We test this hypothesis by performing convergence regressions derived from a model of endogenous technological change. We estimate the rate of growth in per-capita income, relative to the per-capita income of the United States, in terms of US FDI, human development, financial development, a...

The activity of companies with foreign capital is more often in the center attention public opinion, researchers and authorities considering positive effects but also negative externalities that it generates on economies host countries. With liberalization movements, FDI was consider panacea could solve all economic, environmental social problems less developed countries, reality much complex. ...

The disappointing economic performance of Sub-Saharan African (SSA) economies in the late 1980s prompted economic-wide policy reforms in the early 1990s. The primary objectives of these institutional and structural changes were to promote trade and export activities, enhance foreign direct investment (FDI) inflows, and ease foreign access to SSA markets particularly for large multinational ente...