Working Papers in full text
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
FDI Spillovers, Financial Markets and Economic Development
|
Author/Editor: |
Alfaro, Laura | Chanda, Areendam | Kalemli-Ozcan, Sebnem | Sayek, Selin |
| Authorized for Distribution: |
September 1, 2003 |
|
Electronic Access: |
Free Full Text (PDF file size is 1,020KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
|
|
Summary: This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
|
|
|
|
Series: |
Working Paper No. 03/186 |
|
Subject(s): |
Economic growth | Capital markets | Foreign investment |
|
Author's keyword(s): |
Economic growth
| financial markets
| foreign direct investment
|
|
|
|
|
| |
Published: |
|
September 1, 2003 |
|
|
|
|
| |
ISBN/ISSN: |
|
1934-7073 |
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA1862003 |
|
Pages: |
|
32 |
| |
Price: |
|
US$15.00
|
|
|
|
|
|
|
