Foreign Direct Investment, Technology and Economic Growth: What the Data Say
Öz
In this article we study the relationship between foreign direct investment (FDI) and economic growth. We classify FDI data by technology to a level of detail which is novel in the literature. We do this by following the criteria laid down by the Organization for Economic Cooperation and Development (OECD) for differentiating sectors by technological content and collating FDI data from multiple sources accordingly. Then we probe the existence of a relationship between FDI and growth by means of choropleth maps and scatterplots. Our findings confirm that FDI and growth are positively related, however we find that, at least in the secondary sector, this positive relationship is strongest when FDI carries a high technological content, while it becomes weaker for less technological FDI types and it even turns negative when the FDI involved is of the lowest technological type. These findings may be used by policy makers in FDI-receiving countries when deciding which type of FDI they should target.
Anahtar Kelimeler
Foreign direct investment, economic growth, manufacturing and service industries, technology
Kaynakça
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