Foreign direct investment and income convergence
- 10 June 2004
- journal article
- research article
- Published by Informa UK Limited in Applied Economics
- Vol. 36 (10), 1045-1049
- https://doi.org/10.1080/0003684042000246759
Abstract
The role of foreign direct investment (FDI) in the convergence of income level and growth has been investigated by panel data regressions. Bilateral FDI data from OECD from 1982 to 1997 is used. Income level and growth gaps between source and host countries turn out to decrease as bilateral FDI increases. It is also found that geographical closeness and common language play an important role in convergence in income level and growth.Keywords
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