UID:
edoccha_9958120570302883
Format:
1 online resource (70 p.)
ISBN:
1-4623-8500-1
,
1-4552-9494-2
,
1-282-84607-8
,
9786612846076
,
1-4552-0115-4
Series Statement:
IMF working paper ; WP/10/132
Content:
What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower borrowing costs and positive real-side external factors were increasingly important drivers of FDI outflows to low-income countries in the pre-crisis period; (ii) economic fundamentals, the strength of economic reforms, and commitment to macroeconomic discipline are crucial determinants of the growth dividends of FDI. Our paper suggests that low-income countries can turn to domestic policy solutions to mitigate the adverse effects of a potential decline in FDI in the post-crisis world.
Note:
"May 2010".
,
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Pre-Crisis Trends in FDI Flows; Figure 1. Recent Trend in FDI Flows to Low-Income Countries, 1990-2008; Figure 2. Global Economic Conditions, 1980-2009; Figure 3. Above and Below Median Values of Institutional Quality and Reform Indices, and FDI to Low-Income Countries; III. Do External Factors Drive FDI Flows to Low-income Countries?; A. External Determinants of FDI Flows: Channels of Transmission; B. Specification; Table 1. Country Coverage; C. Results; Table 2. Baseline Regressions: Determinants of Bilateral FDI Flows
,
Table 3. Bilateral FDI Regression: Lagged Effects of Economic Conditions and Post-1993 Period Table 5. Bilateral FDI Flows: Regional Effects of Recessions; D. Robustness; Table 6. Robustness Test: Role of Local Conditions; IV. FDI and Growth; A. FDI and Economic Growth: Selective Review of Literature; B. Specification; C. Baseline Results; Table 7. Growth Regressions: Impact of FDI; D. Threshold Effects; Table 8. Threshold Regressions; Figure 4. Threshold Analysis; V. Discussion of Results; VI. Conclusions; Appendix 1. Variable Definition and Sources; References; Footnotes
Language:
English
