Outward Foreign Direct Investment and Domestic Investment: The Case of Developing Countries
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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. 2013/052
Subject:
Balance of payments Capital flows Econometric analysis Estimation techniques Financial markets Financial sector development Foreign direct investment
English
Publication Date:
February 26, 2013
ISBN/ISSN:
9781475517934/1018-5941
Stock No:
WPIEA2013052
Pages:
28
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