On the Role of Absorptive Capacity: FDI Matters to Growth
dc.contributor.author | Kinoshita, Yuko | en_US |
dc.contributor.author | Lu, Chia-Hui | en_US |
dc.date.accessioned | 2007-10-25T20:12:52Z | |
dc.date.available | 2007-10-25T20:12:52Z | |
dc.date.issued | 2006-11-01 | en_US |
dc.identifier.other | RePEc:wdi:papers:2006-845 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/57225 | en_US |
dc.description.abstract | The paper studies the effects of foreign direct investment (FDI) on economic growth when sufficient provisions of infrastructure is a pre-requisite. In the overlapping generations setting, we show that technology spillovers via FDI take place only when the host country has the sufficient level of infrastructure. Infrastructure has a subsequent positive feedback on further investment which leads the country to grow faster. If infrastructure falls short of the critical level, however, then FDI has little effect on growth as the country is trapped in a low growth equilibrium. We also present the simulations and empirical results based on panel data for 42 developing countries between 1970 and 2000. They support the model that FDI and infrastructure are complementary in affecting per capita GDP growth. | en_US |
dc.format.extent | 289825 bytes | |
dc.format.extent | 1802 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.relation.ispartofseries | 845 | en_US |
dc.subject | Foreign Direct Investment; Economic Growth, Technology Diffusion, Infrastructure | en_US |
dc.subject.other | F21, O40, O33, H54 | en_US |
dc.title | On the Role of Absorptive Capacity: FDI Matters to Growth | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.contributor.affiliationum | William Davidson Institute | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/57225/1/wp845 .pdf | en_US |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.