Foreign direct investment, economic freedom and economic growth: international evidence
In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on ou...
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| Format: | Article |
| Language: | English |
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Elsevier
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/40289/1/Foreign%20direct%20investment%2C%20economic%20freedom%20and%20economic%20growth%20international%20evidence.pdf |
| _version_ | 1796973710621540352 |
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| author | Wan Ngah, Wan Azman Saini Baharumshah, Ahmad Zubaidi Law, Siong Hook |
| author_facet | Wan Ngah, Wan Azman Saini Baharumshah, Ahmad Zubaidi Law, Siong Hook |
| author_sort | Wan Ngah, Wan Azman Saini |
| collection | UPM |
| description | In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs). |
| first_indexed | 2024-03-06T08:46:38Z |
| format | Article |
| id | upm.eprints-40289 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:46:38Z |
| publishDate | 2010 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-402892015-09-15T08:39:14Z http://psasir.upm.edu.my/id/eprint/40289/ Foreign direct investment, economic freedom and economic growth: international evidence Wan Ngah, Wan Azman Saini Baharumshah, Ahmad Zubaidi Law, Siong Hook In this paper, we investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries. Our empirical results, based on the generalized method-of-moment system estimator, reveal that FDI by itself has no direct (positive) effect on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs). Elsevier 2010-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/40289/1/Foreign%20direct%20investment%2C%20economic%20freedom%20and%20economic%20growth%20international%20evidence.pdf Wan Ngah, Wan Azman Saini and Baharumshah, Ahmad Zubaidi and Law, Siong Hook (2010) Foreign direct investment, economic freedom and economic growth: international evidence. Economic Modelling, 27 (5). pp. 1079-1089. ISSN 0264-9993; ESSN: 1873-6122 http://www.sciencedirect.com/science/article/pii/S0264999310000635 10.1016/j.econmod.2010.04.001 |
| spellingShingle | Wan Ngah, Wan Azman Saini Baharumshah, Ahmad Zubaidi Law, Siong Hook Foreign direct investment, economic freedom and economic growth: international evidence |
| title | Foreign direct investment, economic freedom and economic growth: international evidence |
| title_full | Foreign direct investment, economic freedom and economic growth: international evidence |
| title_fullStr | Foreign direct investment, economic freedom and economic growth: international evidence |
| title_full_unstemmed | Foreign direct investment, economic freedom and economic growth: international evidence |
| title_short | Foreign direct investment, economic freedom and economic growth: international evidence |
| title_sort | foreign direct investment economic freedom and economic growth international evidence |
| url | http://psasir.upm.edu.my/id/eprint/40289/1/Foreign%20direct%20investment%2C%20economic%20freedom%20and%20economic%20growth%20international%20evidence.pdf |
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