Click here for search results
Foreign direct investment, regulations, and growth, Volume 1
 
Author:Busse, Matthias; Groizard, Jose Luis; Country:World;
Date Stored:2006/04/14Document Date:2006/04/01
Document Type:Policy Research Working PaperSubTopics:Achieving Shared Growth; Foreign Direct Investment; Economic Theory & Research; Regulatory Regimes; Public Sector Regulation
Language:EnglishRegion:The World Region
Report Number:WPS3882Collection Title:Policy, Research working paper ; no. WPS 3882
Volume No:1  

Summary: This paper explores the linkage between income growth rates and foreign direct investment (FDI) inflows. So far the evidence is rather mixed, as no robust relationship between FDI and income growth has been established. The authors argue that countries need a sound business environment in the form of good government regulations to be able to benefit from FDI. Using a comprehensive data set for regulations, they test this hypothesis and find evidence that excessive regulations restrict growth through FDI only in the most regulated economies. This result holds true for different specifications of the econometric model, including instrumental variable regressions.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 26 pagesOfficial version*0.29
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/6OKTFJ9ZG0