文档介绍：3 FDI and Economic Growth
Introduction
Foreign direct investment (FDI) es crucial for many developing
countries. FDI has some potentially desirable features that affect the
growth with significant implications for poverty reduction. Thus, this is an
important issue particularly in the case of sub-Saharan African countries
with a small share of FDI inflows relatively to other developing countries.
This chapter empirically analyzes the relationship between foreign direct
investment (FDI) and economic growth (Fig. ).
Economic
FDI
? Growth

Fig. . FDI and economic growth
Literature Review
The literature on FDI and growth relationship can be classified into two
groups: (i) studies that emphasizing favorable contributions of FDI on
growth, what we qualify as “Pro’s,” and (ii) studies that emphasize either
weak or even harmful effects of FDI on growth, what we call “Con’s.”
Pro’s
According to the neoclassical growth theory, long-run economic growth
stems from technological progress and labor force growth, factors assumed
to be exogenous. Under this assumption, FDI can only be expected to have
a short-run effect on output growth. However, the recent development of
endogenous growth theory has encouraged researchers to analyze the
channels through which FDI promotes economic growth in the long-run
(Grossman and Helpm