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You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Exports and Imports x
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Cover IMF Working Papers
Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature
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.
Keywords:
WP; parent firm; production cost; efficiency spillover; FDI investor; economic growth; factor cost; FDI inflow; FDI policy; horizontal FDI; foreign direct investment; determinants; growth contribution; Foreign corporations; Spillovers; Tax incentives; Exports; Asia and Pacific; Global
Cover Western Europe in Transition
Western Europe in Transition
Impact of Opening Up Eastern Europe
International Monetary Fund

Abstract

This paper examines the impact of the opening up of Eastern Europe and the Former Soviet Union on Western Europe. The analysis suggests that given reasonable (yet necessarily imprecise) assumptions on the likely developments in the previously centrally planned economies (PCPEs) over the next ten years, West European capital markets are likely to experience only a mild squeeze from their concerted efforts to provide external financing to the East. Most macroeconomic aggregates are likely to suffer shocks significantly smaller than would be expected from a typical business cycle.

Keywords:
BOOK; inflation risk; OECD Europe; NAFTA debate; producer-interest specific; investment goods; nominal exchange rate; Capital inflows; Employment; Capital flows; Imports; North American Free Trade Agreement; Western Europe; Eastern Europe; Central and Eastern Europe; Europe; Asia and Pacific