TY - JOUR
T1 - Growth effects of FDI and portfolio investment flows to developing countries
T2 - A disaggregated analysis by income levels
AU - De Vita, Glauco
AU - Kyaw, Khine S.
PY - 2009
Y1 - 2009
N2 - What is the impact of foreign direct investment (FDI) and portfolio investment flows on the economic growth of low-, lower middle- and upper middle-income countries? In this article we address this question using a dynamic panel model and a large data set of 126 developing countries for the period 1985 to 2002. Employing the system-generalized methods of moments (GMM) estimation approach, our findings suggest that only developing countries that have reached a minimum level of economic development and absorptive capacity are capturing the growth-enhancing effects of both forms of investment inflows.
AB - What is the impact of foreign direct investment (FDI) and portfolio investment flows on the economic growth of low-, lower middle- and upper middle-income countries? In this article we address this question using a dynamic panel model and a large data set of 126 developing countries for the period 1985 to 2002. Employing the system-generalized methods of moments (GMM) estimation approach, our findings suggest that only developing countries that have reached a minimum level of economic development and absorptive capacity are capturing the growth-enhancing effects of both forms of investment inflows.
UR - http://www.tandfonline.com/doi/abs/10.1080/13504850601018437
U2 - 10.1080/13504850601018437
DO - 10.1080/13504850601018437
M3 - Article
SN - 1466-4291
VL - 16
SP - 277
EP - 283
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 3
ER -