Journal of the Korea Academia-Industrial cooperation Society (한국산학기술학회논문지)

The Korea Academia-Industrial cooperation Society (한국산학기술학회)
권호 표지
DOI QR코드

DOI QR Code

An Empirical Study of Foreign Direct Investment and Economic Growth in Developing Countries

외국인직접투자가 개발도상국의 경제성장에 미치는 영향

  • Jeong, Dong-Won (Division of International Economics and Trade, Hoseo University) ;
  • Han, Jong-Ho (Division of International Economics and Trade, Hoseo University) ;
  • Lim, Chea-Sung (Department of Community Development, Kongju national University)
  • 정동원 (호서대학교 경제통상학부) ;
  • 한종호 (호서대학교 경제통상학부) ;
  • 임채성 (공주대학교 지역사회개발학과)
  • Received : 2014.01.20
  • Accepted : 2014.05.08
  • Published : 2014.05.31
Download PDF
⟨ Previous Next ⟩

Abstract

For the past decades, role of foreign direct investment has increased. Specially, East Asia and BRICs has experienced rapidly economic growth by FDI. Nevertheless, most of developing countries suffer from poverty. This paper empirically explores the impacts of FDI on economic output using a cross-country analysis based on data from 88 developing countries for the years 1990-2011. To this end, FDI is explicitly included in production function as production factor. Cross-country regression of income level is estimated with the country's human development, population growth, physical accumulation, and FDI as explanatory variables. Main finding of this paper is that FDI has a positive and significant impact on economic growth.

지난 수십년간 외국인직접투자의 역할은 증가하여 왔다. 특히, 동아시아와 BRICs는 외국인직접투자를 통해 급속한 경제발전을 이룩하였다. 그럼에도 불구하고 많은 개발도상국들은 빈곤에서 벗어나지 못하고 있는 실정이다. 이에 본 논문은 외국인직접투자와 개발도상국의 경제적 성과를 살펴보고자 1990년부터 2011년 기간 동안 88개 개발도상국을 대상으로 외국인직접투자를 명시적으로 포함하는 확장된 신고전학파적 솔로우 모형을 이용하여 분석하고자 한다. 분석결과, 외국인직접투자는 개발도상국의 경제적 성과에 유의하게 기여한다는 결론을 얻을 수 있었다.

Keywords

References

  1. Mankiew, G., Romer, D. and Weil, D., "A Contribution to the Empirics of Economic Growth", Quarterly Journal of Economics, 107(2), pp.407-437, 1992. DOI: http://dx.doi.org/10.2307/2118477
  2. Singer, H. W., "The Distribution of Gains Between Investing and Borrowing Countries", American Economics Review, 40(2), pp.473-485, 1950.
  3. Saltz, I. S., "The Negative Correlation Between Foreign Direct Investment and Economic Growth in Third World: Theory and Evidence", Rivista Internazionale id Scinze Economiche e Commerciali, 39(7), pp.617-633, 1992.
  4. Carkovic, M. and Levine, R., "Does Foreign Direct Investment Accelerate Economic Growth?", University of Minnesota, Working Paper. pp.195-220, 2002.
  5. Bosworth, B., Collins, S. M .and Reinhart, C. M., Capital Flows to Developing Economies: Implications for Saving and Investment, pp.143-180, Brookings Papers on Economic Activity 1, 1999.
  6. De Gregorio, J., "Economic growth in Latin America", Journal of Development Economics 39(1), pp.59-84, 1992. DOI: http://dx.doi.org/10.1016/0304-3878(92)90057-G
  7. De Mello, L., "Foreign direct investment led growth: evidence from time series and panel data", Oxford Economic Papers 51(1), pp.133-151, 1999. DOI: http://dx.doi.org/10.1093/oep/51.1.133
  8. Barrell, R. and Pain, N., "Domestic Institutions, Agglomerations and Foreign Direct Investment in Europe", European Economic Review 43, pp.925-934, 1999. DOI: http://dx.doi.org/10.1016/S0014-2921(98)00105-6
  9. Campos, N. F. and Kinoshita, Y., "Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies", The Manchester School, 70(3), pp.389-419, 2002. DOI: http://dx.doi.org/10.1111/1467-9957.00309
  10. Shou, H., "Foreign Direct Investment and Regional Growth in China", Proceeding of the German Development Economics Conference, 2009.
  11. Alfaro, L., Chanda, A. Kalemli-Ozcan, S. and Sayek, S., "FDI and Economic Growth: The Role of Local Financial Markets". The Journal of International Economics, 64(1), pp.89-112, 2004. DOI: http://dx.doi.org/10.1016/S0022-1996(03)00081-3
  12. Nonneman, W. and Vanhoudt, P., "A further augmentation of the Solow model and the empirics of economic growth for OECD countries", Quarterly Journal of Economics 111(3), 943-953, 1996. DOI: http://dx.doi.org/10.2307/2946677
  13. Ram, R., "Tropics and Economic Development: An Empirical Investigation," World Development, 25(9), pp.1443-1452, 1997. DOI: http://dx.doi.org/10.1016/S0305-750X(97)00044-2
  14. Temple, J., "Equipment Investment and the Solow Model, Oxford Economic Paper, 50(1), pp.39-62, 1998. DOI: http://dx.doi.org/10.1093/oxfordjournals.oep.a028635
  15. Yoo, S-H, "Does Information Technology Contribute to Economic Growth in Developing Countries? A Cross-country Analysis", Applied Economics Letters, 10(11), pp.679-682, 2003. DOI: http://dx.doi.org/10.1080/1350485032000138971
  16. Bassett, G. and Koenker, R., "Asymptotic Theory of Least Absolute Error Regression", Journal of the American Statistical Association, 73(363), pp.618-622, 1978. DOI: http://dx.doi.org/10.1080/01621459.1978.10480065
  17. Yoo, S-H, "A Robust Estimation of Hedonic Price Model: Least Absolute Deviations Estimation", Applied Economics Letters, 8(1), pp.56-58, 2001. DOI: http://dx.doi.org/10.1080/135048501750041303
  18. World Bank(2013)