Foreign direct investment (FDI) has boomed in post-reform India. Moreover, the composition and type of FDI has changed considerably since India has opened up to world markets. This has fuelled high expectations that FDI may serve as a catalyst to higher economic growth. We assess the growth implications of FDI in India by subjecting industry-specific FDI and output data to Granger causality tes...

This study examines the spillover effects of foreign direct investment (FDI) on green technology progress rate (as measured by the green total factor productivity). The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications-high/low discharge regulation and high/low emission standard regulation. The results...

The paper discusses a theory of FDI, which captures a unique feature: hands-on management standards to react in real time to a changing economic environment in the firms that FDI investors gain control. Equipped with superior managerial skills, foreign direct investors outbid portfolio investors for the top productivity firms in a particular industry in which they have specialized in the source...

foreign direct investmentplays a crucial role in the economy of developing countries like bangladesh through accelerating gross domestic product (gdp), export and domestic investment followed by overall economic growth. the present scenario of fdi in bangladesh in not still satisfactory enough but given the availability of abundant resources, skilled and cheap labor forces, a stable political a...

Theoretical considerations suggest that the option of waiting under conditions of uncertainty affects the relative importance of firm-level productivity and distance-related transaction costs as driving forces of FDI. Yet the timing of FDI has received little attention in the empirical literature on FDI determinants. To help close this gap we analyze FDI decisions by German firms with and witho...

The knowledge-capital model acknowledges that FDI has both vertical as well as horizontal elements. However, there is much controversy with regard to the empirical relevance of vertical FDI. We re-investigate this issue by looking at FDI at a more disaggregated level, using data on bilateral FDI in manufacturing and services for a number of industrialised countries. Our results are strongly sup...

The aim of this study is to the long run relationship among Foreign Direct Investment, Trade (Imports & Exports) and Economic growth for Pakistan. The co-integrating VAR framework is used to find the relationship over the period of 1965 to 2005. The results show that there are two long run relationships exist between GDP, Imports and Exports and FDI. First long run relationship shows that both ...

The objective of the paper is twofold. First, is to examine causal relationship between foreign direct investment (FDI) and economic growth in Malaysia and second, to look at the impact of FDI on the stability of economic growth and the impact of growth on stability of FDI. Using time series data, the paper implements the recent Toda and Yamamoto’s (1995) non-causality test to establish the dir...

Foreign direct investment (FDI) is a major factor in the globalization scenario. However, contrary to the core pro-market tenets of the economic school supporting globalization, the flows of FDI have grown side by side with a whole array of FDI subsidies dispensed by the “visible hand” of the state. Scholars have studied the links between FDI and economic growth and between subsidies and actual...