Foreign direct investment, regulations, and growth
By: Matthias Busse, Jose Luis Groizard
Contributors: Groizard Cardosa, José Luis; World Bank
Series: Policy research working paper -- 3882; Policy research working papers (Online) -- 3882.
Publisher: World Bank
Published: 2006
Place of publication: Washington, D.C
Language: eng
Format: [electronic resource] /
Subjects: Foreign Investments; Economic development
Description: "This paper explores the linkage between income growth rates and foreign direct investment (FDI) inflows.  So far the evidence is rather mixed, as no robust relationship between FDI and income growth has been established.  The authors argue that countries need a sound business environment in the form of good government regulations to be able to benefit from FDI.  Using a comprehensive data set for regulations, they test this hypothesis and find evidence that excessive regulations restrict growth through FDI only in the most regulated economies.  This result holds true for different specifications of the econometric model, including instrumental variable regressions. "--World Bank web site.
Notes: Title from PDF file as viewed on 4/19/2006.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.