Effects Of Fdi On Economic Growth

Great Essays
2.0 LITERATURE REVIEW
2.1 FDI inflows with Economic Growth
In the early 1960s, scholars have noted the impact of foreign direct investment (MacDougall, 1960) for the general welfare , early contribution to the study of the spillover effect of foreign direct investment( spillover effects of FDI refers to the positive externalities of foreign direct investment in addition to a direct role than generated .) , including foreign direct investment also tariff policy as well as the host country the role of industry, etc. (Caves, 1971). In these early studies, although foreign direct investment on productivity externalities with foreign direct investment, such as the effect of government revenue, tax policy, trade, balance of payments, etc. are discussed together, but empirical analysis has shown multinational access to improve the efficiency of the local economy has a positive effect. In
…show more content…
In the same view is included Koldy [1995] who applies Granger causality test on 10 economies from Eastern Asia. The negative connection is also demonstrated by Lipsey and Sjoholm [2005, p: 297] noted that “there is no universal relation between the ratio of FDI inflows in GDP and the national growth …show more content…
FDI inflow can bring the not only the technological benefits to the host countries in imports of modern technologies, But also in education and training the

Related Documents

  • Superior Essays

    Policy Proposal – Affordable Housing Regulations Problem: The availability of affordable housing is in limited supply, causing the middle class families face potential homelessness. Claim 1: The property business gets better after the financial crisis abates. 1. The selling price of homes skyrocketing again after numbers of local and foreign investors, especially from China, started purchasing properties in compelling quantity. “Middle class Chinese has spent over $28 billion on American homes through 2014.”…

    • 1492 Words
    • 6 Pages
    Superior Essays
  • Decent Essays

    The positive from immigrants are can be increased the foreign experts in the sector of technology and communication between countries. They will work in the place that they are expert. It can make the sector of technology evolved and known throughout the world…

    • 349 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Immigration is a topic that can spark some of the most heated debates. Whether for or against, people tend to have varying opinions. In this paper, I will be citing examples and giving explanations as to why I am for immigration. Firstly, many give the argument that economic impact of immigration is a burden on the American economy.…

    • 335 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    ‘Foreign Direct Investment in India: Issues and Problems’ .Development Discussion.3(1),pp…

    • 1546 Words
    • 7 Pages
    Great Essays
  • Great Essays

    Jabwood Case Study

    • 1619 Words
    • 7 Pages

    The following lines will look at them. The theory of international investment is one of those to be considered by Jabwood. The theory rests on the concept of trade seen in the image of a product or service being produced…

    • 1619 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Two conflicting schools of thought will be compared and contrasted in a situation that requires a human being to make a decision that will affect thousands of people. Utilitarianism and Kantianism will be analyzed in order to determine each theory’s ideas of punishment and in what situations punishment is acceptable. Utilitarianism finds that people should conduct themselves in a way that would maximize happiness and minimize suffering. This theory of ethics follows what is called teleological ethics- a type of ethics that focuses value on the consequences or outcomes of the actions.…

    • 557 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Immigration and the Economy: A Review of the Literature The question of the relationship between immigration and the economy is incredibly robust and important. How immigration impacts GDP (both national and per capita), real wages, and other various economic factors is of the utmost importance in crafting immigration policy. As immigration is a hot-button topic, especially during this election cycle, it is necessary to separate fact from emotional rhetoric. The following pages will examine the how this topic is analyzed in the scholarly literature.…

    • 1143 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The economy is constantly growing and changing. There are several different factors that impact the economy’s growth too, such as the rate of saving, growth in technology, immigration, and property rights. Each factor plays a specific role in influencing a country’s economic growth and development year after year. This essay will discuss these various types of factors that contribute to economic growth.…

    • 726 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Technology, automobiles and trading were the 3 main areas which increased the investments from foreign companies in…

    • 871 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Liberalization of trade may also be seen as the main cause of this immigration. Developing countries, in recent times, have been in pursuit of measures of liberalizing trade with a view to globalizing their production. Any attempt to close off the America will not bring any solution to the problem. This will bring difficulty to a generally free society with comprehensive boundaries to close out the world. That will make it Worse, to be effective such manages as ID cards, citizenship assessments, office raids, company penalties, and more would challenge liberties.…

    • 998 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    3) Views Against NAFTA There are opinions available that mentions negative impact of NAFTA on the economies. * NAFTA, did not allow the protection of workers' rights. NAFTA has established agency to the defense of workers 'rights. It did not worked effectively, governments and companies could not be held liable in cases of violations of workers' rights.…

    • 280 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Global Competitiveness and Foreign Direct Investment Global competitiveness assesses a countries productivity and return on investments by using a number of benchmark measurements. The different measurements expose opportunities for Foreign Direct Investments (FDI) from outside countries or entities (Hill, 2009). As organizations see opportunities to in other countries to invest and increase productivity for their firm and the country it can operate in, FDI becomes mutually beneficial.…

    • 906 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Epistemology: What is the sole impact of these recent developments on merging of business cycles across countries? The answer to this question has been thoroughly plotted as an attempt to solve the globalization puzzle. A systematic examination has been done as though how the impact of international trade and financial integration has greatly influenced the international cycle of business comovements. To be specific, an analysis of patterns of precise correlations was made for industrial and developing countries that inspired a unique empirical framework.…

    • 1518 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    According to Balive (2009), when people are immigrate to other country then unemployment is also increase day by day. The population increases the job become terror because immigrants are graduated and intelligent. Then business men are also removing native workers and young workers will be joining. According to Oak (2011), the major…

    • 994 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Foreign Shock Case Study

    • 744 Words
    • 3 Pages

    2.4 Relationship between Foreign Shocks and Export With the increased of globalization trend, each country depend heavily on another countries. The effects of foreign shocks from main trading partners are significant impacts on own country’s economy activities either in positive way or negative way. According to Ibrahim (2003) that this issue can be explored through two mechanisms such as business cycle transmission, and International trade and capital flows. Ibrahim had estimated industrial production (IP) growth, consumer price index (CPI), M2 growth, exchange rate, Malaysia T-bill and US federal fund rates over the monthly data of January 1977 to August 1998 in both Malaysia and the US. He used ADF unit root test and PP unit root test, Johansen…

    • 744 Words
    • 3 Pages
    Improved Essays