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Essay

Foreign Direct Investment And Foreign Trade Regimes

Essay specific features

 

Issue:

Science

 

Written by:

Sean L

 

Date added:

November 17, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

22 / 6039

 

Was viewed:

9627 times

 

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Essay content:

The result of the whole period (1970-2006) is not consistent with the Bhagwati hypothesis. However, the result of the pre-crisis model (1970-1996) is consistent with the Bhagwati hypothesis, that is, other things being equal, the growth impact of FDI tends to be greater under an export promotion (EP) trade regime compared to an import-substitution (IS) regime...
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INTRODUCTION The role of foreign direct investment (FDI) has been widely recognized as a growth-enhancing factor in developing countries. In a closed economy, with no access to foreign saving, investment is financed both through domestic savings. However, in an open economy, investment is financed through both domestic saving and foreign capital flow including FDI...
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