Title FDI flows to low-income countries : global drivers and growth implications / prepared by Era Dabla-Norris [and others]

Published [Washington, D.C.] : International Monetary Fund, 2010

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Description 1 online resource (38 pages) : illustrations Series IMF working paper ; WP/10/132 IMF working paper ; WP/10/132. Contents Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Pre-Crisis Trends in FDI Flows; Figure 1. Recent Trend in FDI Flows to Low-Income Countries, 1990-2008; Figure 2. Global Economic Conditions, 1980-2009; Figure 3. Above and Below Median Values of Institutional Quality and Reform Indices, and FDI to Low-Income Countries; III. Do External Factors Drive FDI Flows to Low-income Countries?; A. External Determinants of FDI Flows: Channels of Transmission; B. Specification; Table 1. Country Coverage; C. Results; Table 2. Baseline Regressions: Determinants of Bilateral FDI Flows Table 3. Bilateral FDI Regression: Lagged Effects of Economic Conditions and Post-1993 Period Table 5. Bilateral FDI Flows: Regional Effects of Recessions; D. Robustness; Table 6. Robustness Test: Role of Local Conditions; IV. FDI and Growth; A. FDI and Economic Growth: Selective Review of Literature; B. Specification; C. Baseline Results; Table 7. Growth Regressions: Impact of FDI; D. Threshold Effects; Table 8. Threshold Regressions; Figure 4. Threshold Analysis; V. Discussion of Results; VI. Conclusions; Appendix 1. Variable Definition and Sources; References; Footnotes Summary What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge : (i) lower borrowing costs and positive real-side external factors were increasingly important drivers of FDI outflows to low-income countries in the pre-crisis period; (ii) economic fundamentals, the strength of economic reforms, and commitment to macroeconomic discipline are crucial determinants of the growth dividends of FDI. Our paper suggests that low-income countries can turn to domestic policy solutions to mitigate the adverse effects of a potential decline in FDI in the post-crisis world Bibliography Includes bibliographical references Notes Print version record Subject Investments, Foreign -- Developing countries -- Econometric models Economic development -- Developing countries -- Econometric models Economic development -- Econometric models Investments, Foreign -- Econometric models Developing countries Form Electronic book Author International Monetary Fund. Strategy, Policy, and Review Department, issuing body. International Monetary Fund. African Department, issuing body. ISBN 1282846078 9781282846074 9781455201150 1455201154 1462385001 9781462385003 1455294942 9781455294947 9786612846076 6612846070

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