FDI not only affects the host country's economic growth, but also affects the environment. Under the background of reality that in pursuit of green development, we need to take the comprehensive consideration of FDI performance from economic growth and environmental pollution. Considering the economic and environmental factors, we estimated 280 cities' green development efficiency in China from...

This paper examines how an industry’s productivity is changed by inward FDI occurring in affiliated downstream industries those buying from the focal industry. While controlling for FDI into the focal industry, I find that FDI in downstream industries has a significant negative influence on U.S. manufacturing industries in 1987-1991. Downstream FDI reduces productivity by lowering the demand fo...

Based on a comprehensive review of previous studies about the threshold effects of financial development on the process of foreign direct investment (FDI) spillovers, the present work roundly measures the financial development from the aspects of scale, structure, and efficiency and applies a multiple threshold regression model to estimate the threshold effects of financial development on FDI s...

This paper analyses the role of exchange rates in the competition for FDI. Based on the assumption that two countries compete for FDI from the same source country, the paper shows explicitly that the relative FDI of one country is determined by the relative real exchange rate between its currency and that of the source country. The theoretical result suggests that, if the currency of one FDI re...

This paper reviews the theoretical literature explaining financial FDI, as well as the empirical results on the determinants of financial FDI and its potential effects for the home country. From this revision, we conclude that, at the present stage, the existing theoretical paradigms need to be adapted to explain the recent surge in international banks’ local operations in emerging countries fi...

This paper analyzes the determinants and e ects of rm-level FDI ows on the basis of German micro-level data. Concering the determinants of FDI, I di erentiate between di erent target regions and motivations for FDI (market seeking/horizontal FDI versus cost reducing/vertical FDI). The main result is that most rms engage in FDI because of market access motives. Further, I focus on the employment...

Foreign direct investment (FDI) has dramatically increased worldwide and is the most important form of all private capital flows to developing countries. Yet, it is an important empirical question whether FDI affects total factor productivity (TFP) positively. We investigate the effect of FDI on TFP growth in a large sample of countries in 1970–2000. Our econometric results indicate that FDI ha...