Revisiting the dynamic effect of foreign direct investment on economic growth in LDCs Online publication date: Wed, 27-May-2015
by Md. Al Mamun; Kazi Sohag
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 8, No. 2, 2015
Abstract: The relationship between foreign direct investment (FDI) and gross domestic product (GDP) has long been considered as an unresolved debate in growth literature. Scores of studies have highlighted ambiguous conclusion regarding the exact effect of FDI on economic growth among the recipient countries. Though transfers of technologies, development of financial sectors across the world including in the LDCs have promised a positive role of FDI in the LDCs, however, lack of transparency, accountability, widespread corruption including the motivation of the MNCs have always clouded the outcome. Using most robust methodologies for panel data, this study concludes that LDCs thrive towards growth appetite can very little be fulfilled with FDI, rather domestic fixed capital formulation, efficient use of the existing abundant labour force can foster the economic growth much aggressively even in the long run.
Online publication date: Wed, 27-May-2015
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org