FDI Flows to Low-Income Countries

FDI Flows to Low-Income Countries PDF Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1455201154
Category : Business & Economics
Languages : en
Pages : 40

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Book Description
What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower borrowing costs and positive real-side external factors were increasingly important drivers of FDI outflows to low-income countries in the pre-crisis period; (ii) economic fundamentals, the strength of economic reforms, and commitment to macroeconomic discipline are crucial determinants of the growth dividends of FDI. Our paper suggests that low-income countries can turn to domestic policy solutions to mitigate the adverse effects of a potential decline in FDI in the post-crisis world.

FDI Flows to Low-Income Countries

FDI Flows to Low-Income Countries PDF Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1455201154
Category : Business & Economics
Languages : en
Pages : 40

Get Book

Book Description
What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower borrowing costs and positive real-side external factors were increasingly important drivers of FDI outflows to low-income countries in the pre-crisis period; (ii) economic fundamentals, the strength of economic reforms, and commitment to macroeconomic discipline are crucial determinants of the growth dividends of FDI. Our paper suggests that low-income countries can turn to domestic policy solutions to mitigate the adverse effects of a potential decline in FDI in the post-crisis world.

The Impact of IMF-Supported Programs on FDI in Low-income Countries

The Impact of IMF-Supported Programs on FDI in Low-income Countries PDF Author: Mr.Ali J Al-Sadiq
Publisher: International Monetary Fund
ISBN: 1513502344
Category : Business & Economics
Languages : en
Pages : 38

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Book Description
It is common for IMF-supported adjustment programs with low-income member countries (LICs) to project that they will facilitate FDI inflows. The main objective of this paper is to empirically examine this hypothesis. Using an unbalanced panel dataset for 73 low-income countries over the period 1980–2012, and two different econometric methods that address the selection-bias problem, the empirical results robustly show that participating in IMF-supported program is associated with a significant increase in FDI inflows.

Non-FDI Capital Inflows in Low-Income Developing Countries

Non-FDI Capital Inflows in Low-Income Developing Countries PDF Author: Juliana Dutra Araujo
Publisher: International Monetary Fund
ISBN: 1484341082
Category : Business & Economics
Languages : en
Pages : 41

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Book Description
Low-income countries (LIDCs) are typically characterized by intermittent and very modest access to private external funding sources. Motivated by recent developments in private flows to LIDCs this paper makes two contributions: First, it constructs a new comprehensive dataset on gross private capital flows with special focus on non-FDI flows in LIDCs. Concentrating on LIDCs and more specifically on gross non-FDI private flows is intentionally aimed at closing a gap in existing datasets where country coverage of developing economies is limited mainly to emerging markets (EMs). Second, using the new data, it identifies several shifting patterns of gross non-FDI private inflows to LIDCs. A surprising fact emerges: since the mid 2000's periods of surges in gross non-FDI private inflows in LIDCs are broadly comparable to those of EMs. Moreover, while gross non-FDI inflows to LIDCs are on average much lower than those to EMs, we show that the LIDC top quartile gross non-FDI inflow is comparable to the EM median inflow and converging to the EM top quartile inflow.

Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries

Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries PDF Author: Harinder Singh
Publisher: World Bank Publications
ISBN:
Category : Direkte investeringer
Languages : en
Pages : 48

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Book Description


Outward Foreign Direct Investment and Domestic Investment

Outward Foreign Direct Investment and Domestic Investment PDF Author: Mr.Ali J Al-Sadiq
Publisher: International Monetary Fund
ISBN: 1475517939
Category : Business & Economics
Languages : en
Pages : 28

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Book Description
Over the past two decades, the growth rate of outward foreign direct investment (FDI) from developing and transition economies has increased significantly. Given the role of physical capital accumulation in determining the economic growth rate, it is important to assess how domestic investment responds to such outflows. This study empirically examines the effects of outward FDI on domestic investment in developing countries. Using data from 121 developing and transition economies over the period 1990–2010, the results suggest that FDI outflows negatively impact the rate of domestic investment.

The Landscape of Capital Flows to Low-Income Countries

The Landscape of Capital Flows to Low-Income Countries PDF Author: Sukhwinder Singh
Publisher: International Monetary Fund
ISBN: 1451869134
Category : Business & Economics
Languages : en
Pages : 80

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Book Description
This paper reviews trends in capital flows and capital-like flows such as official grants and remittances to low-income countries over the period 1981-2006. The survey reveals a broadbased increase in such flows as a share of low-income country GDP across major regions, countries with differing commodity export composition, and countries with differing debt relief status. The increase in inflows is dominated by an increase in private sector inflows, mostly in the form of private transfers and foreign direct investment. Official sector inflows have remained comparatively constant as a share of low-income country GDP and even declined in the most recent years. The paper concludes with some tentative policy conclusions and has a discussion of data issues in the annexes.

Foreign Direct Investment and Development

Foreign Direct Investment and Development PDF Author: Theodore H. Moran
Publisher: Peterson Institute
ISBN: 0881326003
Category : Business & Economics
Languages : en
Pages : 183

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Book Description
In this cutting-edge analysis of foreign direct investment (FDI), Moran--one of the acknowledged experts in this area--questions traditional econometric measures of foreign direct investment flows, identifies flaws in past research, elaborates on how the latest research has moved More ... into new territory, and provides a first look at what new research has uncovered. Moran concentrates on FDI in the manufacturing and assembly sector, and discusses if FDI in manufacturing raises the productivity of host country economic activities, if FDI makes the host more competitive in new sectors, and generates externalities that benefit local firms and workers. He provides important new data on the kinds of activities, types of jobs, and level of wages associated with multinational manufacturing investment. This volume dissects the market failures associated with the contemporary idea of development as selfdiscovery, and addresses the tricky question of whether to provide incentives for FDI. In addition, he provides a novel reassessment of the debate about FDI crowding-out or crowding-in domestic investment. This book provides insight and lessons for developing and developed countries, NGOs, the corporate responsibility community, and multilateral lending institutions

Foreign Direct Investment and Poverty Reduction

Foreign Direct Investment and Poverty Reduction PDF Author: Michael U. Klein
Publisher: World Bank Publications
ISBN:
Category : Crecimiento economico
Languages : en
Pages : 50

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Book Description
In the 1990s, foreign direct investment began to swamp all other cross-border capital flows into developing countries. Does foreign direct investment support sound development? In particular, does it contribute to poverty reduction?

Foreign Direct Investment in Developing Countries

Foreign Direct Investment in Developing Countries PDF Author: Sarbajit Chaudhuri
Publisher: Springer
ISBN: 8132218981
Category : Business & Economics
Languages : en
Pages : 327

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Book Description
In development literature Foreign Direct Investment (FDI) is traditionally considered to be instrumental for the economic growth of all countries, particularly the developing ones. It acts as a panacea for breaking out of the vicious circle of low savings/low income and facilitates the import of capital goods and advanced technical knowhow. This book delves into the complex interaction of FDI with diverse factors. While FDI affects the efficiency of domestic producers through technological diffusion and spill-over effects, it also impinges on the labor market, affecting unemployment levels, human capital formation, wages (and wage inequality) and poverty; furthermore, it has important implications for socio-economic issues such as child labor, agricultural disputes over Special Economic Zones (SEZ) and environmental pollution. The empirical evidence with regard to most of the effects of FDI is highly mixed and reflects the fact that there are a number of mechanisms involved that interact with each other to produce opposing results. The book highlights the theoretical underpinnings behind the inherent contradictions and shows that the final outcome depends on a number of country-specific factors such as the nature of non-traded goods, factor endowments, technological and institutional factors. Thus, though not exhaustive, the book integrates FDI within most of the existing economic systems in order to define its much-debated role in developing economies. A theoretical analysis of the different facets of FDI as proposed in the book is thus indispensable, especially for the formulation of appropriate policies for foreign capital.

Foreign Investment in Developing Countries

Foreign Investment in Developing Countries PDF Author: H. Kehal
Publisher: Springer
ISBN: 0230554415
Category : Business & Economics
Languages : en
Pages : 261

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Book Description
This volume examines foreign investment in developing countries both from a theoretical perspective and country specific perspective. It covers strategies to maximize the benefits that draw from the inward investment flow as well as examining foreign investment as a vehicle for international economic integration. The book focuses on foreign investment in the third and fourth largest economies of the world - the Peoples Republic of China and India - in addition to Indonesia, Malaysia and other countries.