Foreign direct investment and domestic capital formation: A comparative analysis

1995 ◽  
Vol 1 (1) ◽  
pp. 88-88
Author(s):  
Gladson I. Nwanna
Keyword(s):  
Foreign Direct Investment ◽  
Comparative Analysis ◽  
Direct Investment ◽  
Capital Formation ◽  
Domestic Capital

The Effect of Foreign Direct Investment on Domestic Capital Formation, Trade, and Economic Growth in a Transition Economy: Evidence from China

2007 ◽  
Vol 7 (2) ◽  
pp. 1850107 ◽  
Author(s):  
Gang Xu ◽  
Ruifang Wang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Transition Economy ◽  
Capital Formation ◽  
Chinese Economy ◽  
Policy Implications ◽  
Set Covering ◽  
Investment Efficiency ◽  
Data Set ◽  
Domestic Capital

Studies of the effects of foreign direct investment (FDI) in the developing countries have reported many conflicting results. In this study, we test the effects of inward FDI on China's domestic capital formation, exports, imports, and GDP growth. To that end, we estimated four econometric equations using a data set covering the 1980-1999 period. A key finding of our research is that it was in the 1990s that inward FDI began to exert a significant effect in the Chinese economy. Our regression results show that the inflow of FDI has stimulated domestic investment in China. The growing presence of FDI appears to have enhanced the investment efficiency in the Chinese economy. Inward FDI is also found to have significantly increased China's exports and imports. The policy implications of our main findings are discussed. Several methodological issues pertaining to FDI research in China are also discussed.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: CASE OF MALAYSIA

2020 ◽  
Vol 2 (4) ◽  
pp. 42-47
Author(s):  
Khairunisah Kamsin ◽  
James Alin ◽  
Mori Kogid
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Capital Formation

This paper examines the role of foreign direct investment (FDI) and capital formation as mechanisms of trade openness for economic growth in Malaysia. This study found that foreign direct investment and capital formation are indicators of trade openness. Thus, this study proposes that policymakers should develop policies so that Malaysia could gain more benefits from trade openness and subsequently, accelerate the country’s economic growth.

scholarly journals Foreign Direct Investment and the Domestic Capital Stock

2005 ◽  
Author(s):  
Mihir Desai ◽  
C. Fritz Foley ◽  
James Hines
Keyword(s):  
Foreign Direct Investment ◽  
Capital Stock ◽  
Direct Investment ◽  
Domestic Capital
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