FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH
Journal Title: Revista Tinerilor Economisti - Year 2007, Vol 1, Issue 9
Abstract
How does foreign direct investment triggered by foreign economic growth affect domestic economic activity? Estimates produced using foreign GDP growth rates for changes in foreign activity indicate that 10% greater foreign capital investment is associated with 2.2% greater domestic investment, and that 10% greater foreign employee compensation is associated with 4.0% greater domestic employee compensation. Changes in foreign and domestic sales, assets, and numbers of employees are likewise positively associated.
Authors and Affiliations
George Ciobanu
Keywords
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