Does FDI cause development? The ambiguity of the evidence and why it matters

Rajneesh Narula, Nigel Driffield

Research output: Contribution to journalArticle

Abstract

The contribution that inward foreign direct investment (FDI) makes to development has been examined in a number of contexts including the relationship between inward FDI and new firm formation; growth; innovation, exports and competitiveness. However, no debate has proved so contentious, or so long lasting as that concerning the extent to which inward FDI stimulates productivity growth in the host country.
Original languageEnglish
Pages (from-to)1-7
Number of pages7
JournalEuropean Journal of Development Research
Volume24
Issue number1
DOIs
Publication statusPublished - Feb 2012

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Bibliographical note

This is a post-peer-review, pre-copyedit version of an article published in European journal of developmental research. The definitive publisher-authenticated version Narula, R., & Driffield, N. (2012). Does FDI cause development? The ambiguity of the evidence and why it matters. European journal of developmental research, 24(1), 1-7 is available online at: http://www.palgrave-journals.com/ejdr/journal/v24/n1/full/ejdr201151a.html

Keywords

  • FDI
  • linkages
  • externalities
  • spillovers
  • government policies
  • development

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