Does Foreign Direct Investment Accelerate Economic Growth?


This paper uses new statistical techniques and two new databases to reassess the relationship between economic growth and FDI. After resolving biases plaguing past work, we find that the exogenous component of FDI does not exert a robust, independent influence on growth. * The corresponding author is Levine: Finance Department, Carlson School of Management, University of Minnesota, 19 Avenue South, Minneapolis, MN 55455; We thank Norman Loayza for helpful statistical advice and Stephen Bond for the use of his DPD program.

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@inproceedings{Carkovic2002DoesFD, title={Does Foreign Direct Investment Accelerate Economic Growth?}, author={Maria Carkovic and Ross Levine}, year={2002} }