Foreign direct investment and growth under economic integration

• 成果类型: Article
• 署名作者: Gao, T
• 署名单位: University of Missouri System; University of Missouri Columbia; City University of Hong Kong
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2004.11.003
• 发表日期: 2005
• 页码: 157-174
• 关键词: endogenous growth; agglomeration; Economic integration; Foreign direct investment; Trade costs

摘要

This paper studies foreign direct investment (FDI) and economic growth in a two-country endogenous growth model. Starting with a core-periphery steady state in the world, the model shows that economic integration gives rise to FDI, leads to an expansion of R&D activity in the industrial core, and increases the world growth rate. In that process, the peripheral country enjoys a rise in the level of living standards. The model suggests that the often-observed positive correlation between inward FDI and economic growth does not necessarily imply any causal relationship-both of them respond endogenously to economic integration. (c) 2004 Elsevier B.V. All rights reserved.