The relationship between foreign direct investment and economic growth: Evidence from transition countries

Transition Studies Review

Volumn 15, Issue 1, 2008, Pages 37-51

  Apergis, Nicholas ^a   Lyroudi, Katerina ^b   Vamvakidis, Athanasios ^c  

^a UNIVERSITY OF PIRAEUS   (Greece)

^b UNIVERSITY OF MACEDONIA   (Greece)

^c INTERNATIONAL MONETARY FUND   (United States)

Author keywords

Economic growth; Foreign direct investment; Panel causality; Panel cointegration; Transition economies

Indexed keywords

EID: 47149098766     PISSN: 16144007     EISSN: 16144015     Source Type: Journal    
DOI: 10.1007/s11300-008-0177-0     Document Type: Article

References (54)

1. Alfaro L, Chanda A, Kalemli-Ozcan S, Sayek S (2002) FDI and economic growth: the role of focal financial markets. Paper presented at a joint conference of the IDB and the World Bank "The FDI Race: Who Gets the Prize? Is It Worth the Effort?"
2. Anyanwu JC (1998) An economic investigation of the determinants of foreign direct investment in Nigeria. In: Proceedings of the 1998 NES Annual Conference. Nigerian Economic Society, Ibadan, pp 219-241
3. Bacha EL (1974) Foreign capital inflow and the output growth rate of the recipient country. Journal of Development Studies 10:374-381
4. Balasubramanyam VN, Salisu M, Sapsford D (1996) Foreign direct investment and growth in EP and IS countries. Economic Journal 106:92-105
5. Barro RJ (1991) Economic growth in a cross-section of countries. Quarterly Journal of Economics 106:407-443
6. Barro RJ, Lee JW (1993) International comparisons of educational attainment. Journal of Monetary Economics 32:361-394
7. Barro RJ, Sala-i-Martin X (1995) Economic growth. McGraw-Hill, New York
8. Barro RJ, Sala-i-Martin X (1992) Convergence. Journal of Political Economy 100:223-251
9. Blomstrom M, Lipsey R, Zejan M (1992) What explains developing country growth. NBER Working Paper 4132. National Bureau of Economic Research, Cambridge, Mass
10. Borensztein E, De Gregorio J, Lee JW (1998) How does foreign direct investment affect economic growth? Journal of International Economics 45:115-135
11. Bosworth BP, Collins SM (1999) Capital flows to developing economies: implications for saving and investment. Brookings Papers on Economic Activity 1999(1):143-169
12. Brouthers KD, Bamossy GJ (1997) The role of key stakeholders in international joint venture negotiations: case studies from Eastern Europe. Journal of International Business Studies 28:285-308
13. Brouthers KD, Brouthers LE, Nakos G (1998) Entering Central and Eastern Europe: risks and cultural barriers. Thunderbird International Business Review 40:485-504
14. Campos NF, Coricelli F (2002) Growth in transition: what we know, what we don't, and what we should. Journal of Economic Literature 15:793-836
15. Campos NF, Kinoshita Y (2002) Foreign direct investment as technology transferred: some panel evidence from the transition economies. CEPR Discussion Paper 3417. Centre for Economic Policy Research, London
16. Carkovic M, Levine R (2002) Does foreign direct investment accelerate economic growth? Department of Business Finance, University of Minnesota, Working Paper. University of Minnesota, Minneapolis
17. De Gregorio J (1992) Economic growth in Latin America. Journal of Development Economics 39:58-84
18. Del Barrio-Castro T, Lopez-Bazo E, Serrano-Domingo G (2002) New evidence on international R&D spillovers, human capital and productivity in the OECD. Economics Letters 77: 41-45
19. De Mello M (1996) Foreign direct investment, international knowledge transfers and endogenous growth: time series evidence. Mimeo. Department of Economics, University of Kent, Kent
20. De Mello M, Denizer C, Gelb A, Tenev S (1997) Circumstances and choice: the role of initial conditions policies in transition economies. Policy Research Working Paper 1866. World Bank, Washington, DC
21. Dickey DA, Fuller WA (1981) Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica 49:1057-1072
22. Doukas J, Travlos NG (1988) The effect of corporate multinationals on shareholder's wealth: evidence from international acquisitions. Journal of Finance 43:1161-1175
23. Fatemi AM (1984) Shareholder benefits from corporate international diversification. Journal of Finance 39:1325-1344
24. Garibaldi P, Mora N, Sahay R, Zettelmeyey J (2001) What moves capital to transition economies? IMF Staff Papers 48:109-145
25. Greenway D, Sapsford D (1994) What does liberalization do for exports and growth? Weltwirtschaftliches Archiv 130:152-173
26. Gylfason T, Zoega G (2001) Natural resources and economic growth: the role of investment. CEPR Discussion Paper 2743. Centre for Economic Policy Research, London
27. Hansen B E (2000) Sample splitting and threshold estimation. Econometrica 68:575-603
28. Huang HC, Chang YK (2005) Investigating Okun's law by the structural break with threshold approach: evidence from Canada. Manchester School 73:599-611
29. Im KS, Pesaran MH, Shin Y (1995) Testing for unit roots in heterogeneous panels. Working Paper 9526. Department of Applied Economics, Cambridge University, Cambridge
30. King R, Levine R (1993) Finance and growth: Schumpeter might be right. Quarterly Journal of Economics 108:717-738
31. Krugman P (1991) Increasing returns and economic geography. Journal of Political Economy 99:483-499
32. La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny R (1998) Law and finance. Journal of Political Economy 106:1113-1155
33. Levine R, Renelt D (1992) A sensitivity analysis of cross-country growth regressions. American Economic Review 82:942-963
34. Nair-Reichert U, Weinhold D (2001) Causality tests for cross country panels: new look at FDI and economic growth in developing countries. Oxford Bulletin of Economics and Statistics 63:153-171
35. Newey WK, West KD (1987) A simple positive demi-deflnite heteroskedasticity and autocor-relation consistent covariance matrix. Econometrica 55:703-732
36. Obwona M B (2001) Determinants of FDI and their impact on economic growth in Uganda. African Development Review 13:46-81
37. Pedroni P (1999) Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics 61(Suppl 1):653-670
38. Pesaran HM, Shin Y, Smith RP (1999) Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association 94:621-634
39. Pfaffermayr M (1994) Foreign direct investment and exports: a time series approach. Applied Economics 26:337-351
40. Picou A (1992) Determinants of the wealth effects resulting from direct foreign investments: 1980-1989. Dissertation, Florida Atlantic University, Boca Raton, Fla
41. Prebisch R (1968) Development problems of the peripheral countries and the terms of trade. In: Theberge JD (ed) Economics of trade and development. Wiley, New York
42. Ram R (1985) Exports and economic growth: some additional evidence. Economic Development and Cultural Change 33:415-422
43. Rivoli P, Salorio E (1996) Foreign direct investment and investment under uncertainty. Journal of International Business Studies 27:335-337
44. Romer PM (1987) Growth based on increasing returns due to specialization. American Economic Review Papers and Proceedings 77:56-62
45. Romer PM (1986) Increasing returns and long-run growth. Journal of Political Economy 94:1002-1037
46. Saltz S (1992) The negative correlation between foreign direct investment and economic growth in the Third World: theory and evidence. Rivista Internazionale di Scienze Economiche e Commerciali 39:617-633
47. Salvatore D, Hatcher T (1991) Inward oriented and outward oriented trade strategies. Journal of Development Studies 27:7-25
48. Savvides A, Stengos T (2000) Income inequality and economic development: evidence from the threshold regression model. Economics Letters 69:207-212
49. Shaw GK (1992) Policy implications of endogenous growth theory. Economic Journal 102:611-621
50. Sjoholm F (1999) Technology gap, competition and spillovers from foreign direct investment: evidence from established data. Journal of Development Studies 36:53-73
51. Stock J, Watson M (1993) A simple estimator of cointegrating vectors in higher order operational systems. Econometrica 61:783-820
52. Wang JY (1990) Growth, technology transfer, and the long-run theory of international capital movements. Journal of International Economics 29:255-271
53. Wei SJ (2000) How taxing is corruption in international investors. Review of Economics and Statistics 82:1-11
54. Zinnes C, Eilat Y, Sachs J (2001) The gains from privatization in transition economies: is "change of ownership" enough? IMF Staff Papers 48 (Special Issue):146-170