How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 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 Flows to Low-Income Countries: Global Drivers and Growth Implications

Author/Editor: Dabla-Norris, Era | Honda, Jiro | Lahrèche-Révil, Amina | Verdier, Geneviève
Authorized for Distribution: June 1, 2010
Electronic Access: Free Full Text (PDF file size is 1,581KB)
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: What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower borrowing costs and positive real-side external factors were increasingly important drivers of FDI outflows to low-income countries in the pre-crisis period; (ii) economic fundamentals, the strength of economic reforms, and commitment to macroeconomic discipline are crucial determinants of the growth dividends of FDI. Our paper suggests that low-income countries can turn to domestic policy solutions to mitigate the adverse effects of a potential decline in FDI in the post-crisis world.
 
Order a print copy
Series: Working Paper No. 10/132
Subject(s): Business cycles | Economic growth | Cross country analysis | Foreign direct investment | Global Financial Crisis 2008-2009 | Low-income developing countries
Author's keyword(s): FDI | economic growth | business cycle | low-income countries
 
English  
    Published:   June 1, 2010        
            Format:   Paper
    Stock No:   WPIEA2010132   Pages:   38
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.