Outward Foreign Direct Investment and Domestic Investment : The Case of Developing Countries
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Over the past two decades, the growth rate of outward foreign direct investment (FDI) from developing and transition economies has increased significantly. Given the role of physical capital accumulation in determining the economic growth rate, it is important to assess how domestic investment responds to such outflows. This study empirically examines the effects of outward FDI on domestic investment in developing countries. Using data from 121 developing and transition economies over the period 1990–2010, the results suggest that FDI outflows negatively impact the rate of domestic investment.
Series:
Working Paper No. 13/52
Subject:
Capital flows Developing countries Economic growth Economic models Foreign direct investment Transition economies
English
Publication Date:
February 26, 2013
ISBN/ISSN:
9781475517934/1018-5941
Stock No:
WPIEA2013052
Format:
Paper
Pages:
28
Please address any questions about this title to publications@imf.org