Manufacturing FDI and Economic Growth: Evidence from Asian Economies

30 Pages Posted: 6 Oct 2003

See all articles by Miao Wang

Miao Wang

Marquette University - Department of Economics

Abstract

This paper studies the impacts of different sector-level foreign direct investment (FDI) inflows on host country's economic growth. Data in 12 Asian economies over the period of 1987-1997 are employed. The empirical results show that FDI in manufacturing sector has a significant and positive effect on economic growth in the host economies. FDI inflows in non-manufacturing sectors do not play a significant role in enhancing economic growth. Furthermore, without the decomposition of total FDI inflows, the effect from FDI on host country's economic growth is possibly underestimated in previous literature.

Keywords: FDI, economic growth

JEL Classification: F21, F43

Suggested Citation

Wang, Miao, Manufacturing FDI and Economic Growth: Evidence from Asian Economies. Available at SSRN: https://ssrn.com/abstract=440440 or http://dx.doi.org/10.2139/ssrn.440440

Miao Wang (Contact Author)

Marquette University - Department of Economics ( email )

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Milwaukee, WI 53201-1881
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