Asset Details
Do you wish to reserve the book?
Testing the Effect of Foreign Direct Investments on the Level of Output for Developing Countries Does Grouping Mater ?
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
Testing the Effect of Foreign Direct Investments on the Level of Output for Developing Countries Does Grouping Mater ?
Do you wish to request the book?
Testing the Effect of Foreign Direct Investments on the Level of Output for Developing Countries Does Grouping Mater ?
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
Testing the Effect of Foreign Direct Investments on the Level of Output for Developing Countries Does Grouping Mater ?
2017
Overview
The main objective of this paper is to study the effect of foreign direct investment (FDI) on the level of output using recent growth theories and econometric techniques. We started the study by taking the work of Mankiw, Romer, and Weil (MRW, 1992) to test the validity of the Solow model in explaining income differences across countries. We constructed samples that are structurally more homogenous using comprehensive, revised, and extended data that covers the time period of 1980 to2010 for all the samples. We augmented the model with foreign direct investment and tested if this kind of augmentation can further improve the results, and give a statement whether FDI can be considered as a factor that helps in explaining income differences across countries. Incorporating subsamples of Developing countries produces better results compared to results produced by the full sample. As expected, the results did not support the cross sectional framework for most of the samples. On the other hand, Foreign Direct Investment is found to be positive, significant, growth enhancing engine, and important output determinant factor only when panel estimation is employed. The results supported the validity of the Solow model and the augmented Solow model for most of samples that we have investigated. After all, there is no doubt that FDI is beneficial to the host economy and governments should work on their policies for their countries to be the destination of multinational corporations' investment
