Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/23037

TitleFinancial globalization, convergence and growth : the role of foreign direct investment
Author(s)Gomes Neto, Delfim
Veiga, Francisco José
KeywordsForeign direct investment
Composition of foreign capital
Diffusion of technology
Catch-up
Convergence
Growth
F21
F36
F43
O47
Issue date2013
PublisherElsevier
JournalJournal of International Money and Finance
Abstract(s)Using a panel data set covering 139 countries over the 1970 - 2009 period, we empirically investigate the role of foreign direct investment on growth through dif- fusion of technology and innovation. Using an otherwise standard growth regression and regressions on productivity growth, we introduce a direct effect of foreign di- rect investment, which may be proxying for innovation, and an indirect effect, to capture the role of technological catch-up. We find that these two mechanisms have a positive effect on productivity growth and on GDP growth. These results are consistent with an open economy model, in which foreign direct investment affects growth through diffusion of technology and innovation.
TypeArticle
URIhttp://hdl.handle.net/1822/23037
DOI10.1016/j.jimonfin.2013.04.005
ISSN0261-5606
Publisher versionhttp://www.journals.elsevier.com/journal-of-international-money-and-finance/
Peer-Reviewedyes
AccessRestricted access (UMinho)
Appears in Collections:NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica

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