Bilateral FDI Flows, Productivity Growth, and Convergence: The North vs. The South

Bilateral FDI Flows, Productivity Growth, and Convergence: The North vs. The South •We test the effects of bilateral FDI flows on host country productivity growth and productivity convergence dynamics.•We test whether FDI effects are conditional on the direction of flows between developed and developing countries.•Independent of their direction, the results show no significant effect of FDI on host country productivity growth.•The results suggest no significant effect of FDI on the productivity gap between the host and the frontier country.•The results are robust to the host country heterogeneity in human capital, openness, and sectoral productivity rates. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png World Development Elsevier

Bilateral FDI Flows, Productivity Growth, and Convergence: The North vs. The South

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Publisher
Elsevier
Copyright
Copyright © 2017 Elsevier Ltd
ISSN
0305-750X
eISSN
1873-5991
D.O.I.
10.1016/j.worlddev.2017.08.006
Publisher site
See Article on Publisher Site

Abstract

•We test the effects of bilateral FDI flows on host country productivity growth and productivity convergence dynamics.•We test whether FDI effects are conditional on the direction of flows between developed and developing countries.•Independent of their direction, the results show no significant effect of FDI on host country productivity growth.•The results suggest no significant effect of FDI on the productivity gap between the host and the frontier country.•The results are robust to the host country heterogeneity in human capital, openness, and sectoral productivity rates.

Journal

World DevelopmentElsevier

Published: Jan 1, 2018

References

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