Change search
ReferencesLink to record
Permanent link

Direct link
Foreign direct investment, Technology and Economic growth
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This paper examines the effect of both inward foreign direct investment (FDI) and outward FDI on economic growth using panel data of 46 countries in the period of 1996 to 2010. The results show that in developed and developing countries, outward FDI positively influences economic growth; this applies to not only home countries but also host countries. However, for inward FDI, in developed countries, negative effects are seen, and we interpret the latter as crowding out effects. It is also shown that research and development (R&D) as a determinant of FDI only works in countries that have reached a certain level of technology. Technology spillover seems to be more pronounced in developed countries than in developing countries. Hence, convergence appears when the technology gap is relatively small and not above a certain threshold. Beyond the threshold level, divergence will occur.

Place, publisher, year, edition, pages
2013. , 26 p.
Keyword [en]
Foreign direct investment, inward, outward, economic growth; R&D, technology gap;
National Category
URN: urn:nbn:se:kth:diva-142638OAI: diva2:703941
Available from: 2014-04-17 Created: 2014-03-10 Last updated: 2014-04-17Bibliographically approved

Open Access in DiVA

No full text

By organisation
Entrepreneurship and innovation

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 81 hits
ReferencesLink to record
Permanent link

Direct link