FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH
Taking into account theory of foreign direct investment (FDI) with neoclassical and endogenous theories of economic growth, FDI has been identified as a factor which directly (capital accumulation) and indirectly (technology transfer) positively influences economic growth. However, empirical find...
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| Format: | Article |
| Language: | English |
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University of Zagreb, Croatia / Faculty of Economics and Business / Department of Trade and International Business
2019-01-01
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| Series: | Poslovna Izvrsnost |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/334439 |
| _version_ | 1797207359458639872 |
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| author | Darko Horvatin |
| author_facet | Darko Horvatin |
| author_sort | Darko Horvatin |
| collection | DOAJ |
| description | Taking into account theory of foreign direct investment (FDI) with neoclassical
and endogenous theories of economic growth, FDI has been identified as a factor which
directly (capital accumulation) and indirectly (technology transfer) positively influences
economic growth. However, empirical findings regarding this matter are quite diverse.
Hence, the purpose of the paper is to take a critical view of the current state of empirical
research regarding the impact of FDI on the recipient country's economic growth. In
doing so, this research will inevitably take a view of the total global FDI inflows from
1970 until present time. The general finding is that there exists no unanimous conclusion
as to the impact of capital inflow on the host country’s economic growth due to a variety
of reasons sometimes not properly treated within the empirical analytical models. More
specifically, this impact varies from being very positive to neutral, at best, or even
negative. The reasons for such ambiguous findings arise from analytical weaknesses (the
way in which analytical samples are created) and the lack of better understanding of
theoretical and empirical aspects of the contribution of foreign capital to the host
country's economic growth (no differentiation between short- and long-term effects). |
| first_indexed | 2024-04-24T09:21:39Z |
| format | Article |
| id | doaj.art-a68da674c8764aa8bdce58a54ab0fe1a |
| institution | Directory Open Access Journal |
| issn | 1846-3355 1848-9060 |
| language | English |
| last_indexed | 2024-04-24T09:21:39Z |
| publishDate | 2019-01-01 |
| publisher | University of Zagreb, Croatia / Faculty of Economics and Business / Department of Trade and International Business |
| record_format | Article |
| series | Poslovna Izvrsnost |
| spelling | doaj.art-a68da674c8764aa8bdce58a54ab0fe1a2024-04-15T15:56:48ZengUniversity of Zagreb, Croatia / Faculty of Economics and Business / Department of Trade and International BusinessPoslovna Izvrsnost1846-33551848-90602019-01-0113217920110.22598/pi-be/2019.13.2.179FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCHDarko Horvatin0Croatian Pension Investment Company, Zagreb, CroatiaTaking into account theory of foreign direct investment (FDI) with neoclassical and endogenous theories of economic growth, FDI has been identified as a factor which directly (capital accumulation) and indirectly (technology transfer) positively influences economic growth. However, empirical findings regarding this matter are quite diverse. Hence, the purpose of the paper is to take a critical view of the current state of empirical research regarding the impact of FDI on the recipient country's economic growth. In doing so, this research will inevitably take a view of the total global FDI inflows from 1970 until present time. The general finding is that there exists no unanimous conclusion as to the impact of capital inflow on the host country’s economic growth due to a variety of reasons sometimes not properly treated within the empirical analytical models. More specifically, this impact varies from being very positive to neutral, at best, or even negative. The reasons for such ambiguous findings arise from analytical weaknesses (the way in which analytical samples are created) and the lack of better understanding of theoretical and empirical aspects of the contribution of foreign capital to the host country's economic growth (no differentiation between short- and long-term effects).https://hrcak.srce.hr/file/334439FDIeconomic growthgreenfield investmentmergers and acquisition. |
| spellingShingle | Darko Horvatin FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH Poslovna Izvrsnost FDI economic growth greenfield investment mergers and acquisition. |
| title | FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING
STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH |
| title_full | FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING
STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH |
| title_fullStr | FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING
STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH |
| title_full_unstemmed | FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING
STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH |
| title_short | FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TAKING
STOCK OF THE CURRENT STATE OF EMPIRICAL RESEARCH |
| title_sort | foreign direct investment and economic growth taking stock of the current state of empirical research |
| topic | FDI economic growth greenfield investment mergers and acquisition. |
| url | https://hrcak.srce.hr/file/334439 |
| work_keys_str_mv | AT darkohorvatin foreigndirectinvestmentandeconomicgrowthtakingstockofthecurrentstateofempiricalresearch |