You are looking at 1 - 1 of 1 items for :

  • International economics x
  • Public Finance x
  • Financial sector policy and analysis x
  • International trade x
  • Exports and Imports x
  • Labour; income economics x
  • Wages, Compensation, and Labor Costs: General x
  • Multinationals x
  • Investments, Foreign x
  • Externalities x
  • Economic Development, Innovation, Technological Change, and Growth: General x
  • IMF Working Papers x
  • Economic sectors x
  • Trade: General x
  • Tax incentives x
  • Fiscal sector x
  • Society and Social Sciences x
  • Refine By Language: English x
Clear All
Mr. Ewe-Ghee Lim
This paper summarizes recent arguments/findings on two aspects of foreign direct investment (FDI): its correlation with economic growth and its determinants. The first part focuses on recent literature regarding positive spillovers from FDI while the second deals with the determinants of FDI. The paper finds that while substantial support exists for positive spillovers from FDI, there is no consensus on causality. On determinants, the paper finds that market size, infrastructure quality, political/economic stability, and free trade zones are important for FDI, while results are mixed regarding the importance of fiscal incentives, the business/investment climate, labor costs, and openness.