The Positive Casual Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship

Rodolphe Desbordes, Vincenzo Verardi

Research output: Working paperDiscussion paper

Abstract

Previous research has argued that foreign direct investment (FDI) exerts a positive and causal impact on the productivity of the recipient countries. However, we find that there is little macroeconomic evidence that FDI fosters productivity growth in recipient countries, including in those with high absorptive capacity, once we use an instrumental variables (IV) estimator robust to outliers.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-45
Number of pages46
Volume11
Publication statusPublished - Feb 2011

Fingerprint

Foreign direct investment
Productivity
Productivity growth
Instrumental variables estimator
Outliers
Macroeconomics
Absorptive capacity

Keywords

  • foreign direct investment
  • productivity
  • robust regression

Cite this

Desbordes, R., & Verardi, V. (2011). The Positive Casual Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship. (06 ed.) (pp. 1-45). Glasgow: University of Strathclyde.
Desbordes, Rodolphe ; Verardi, Vincenzo. / The Positive Casual Impact of Foreign Direct Investment on Productivity : A Not So Typical Relationship. 06. ed. Glasgow : University of Strathclyde, 2011. pp. 1-45
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Desbordes, R & Verardi, V 2011 'The Positive Casual Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship' 06 edn, University of Strathclyde, Glasgow, pp. 1-45.

The Positive Casual Impact of Foreign Direct Investment on Productivity : A Not So Typical Relationship. / Desbordes, Rodolphe; Verardi, Vincenzo.

06. ed. Glasgow : University of Strathclyde, 2011. p. 1-45.

Research output: Working paperDiscussion paper

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Desbordes R, Verardi V. The Positive Casual Impact of Foreign Direct Investment on Productivity: A Not So Typical Relationship. 06 ed. Glasgow: University of Strathclyde. 2011 Feb, p. 1-45.