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FDI Spillovers, Financial Markets, and Economic Development, Selin Sayek, Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan

Label
FDI Spillovers, Financial Markets, and Economic Development, Selin Sayek, Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan
Language
eng
Abstract
This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development
resource.governmentPublication
international or intergovernmental publication
Literary Form
non fiction
Main title
FDI Spillovers, Financial Markets, and Economic Development
Nature of contents
dictionaries
Responsibility statement
Selin Sayek, Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan
Series statement
IMF Working Papers
Content
Other version