Foreign Direct Investment, Institutions, and Domestic Investment in Developing Countries: Is there a Crowding-Out Effect?

被引:1
作者
Magbonde, Kadoukpe Gildas [1 ]
Thiam, Djiby Racine [1 ]
Konte, Mamadou Abdoulaye [2 ]
机构
[1] Univ Cape Town UCT, Sch Econ, Cape Town, South Africa
[2] Univ Gaston Berger UGB, Dept Econ, St Louis, Senegal
关键词
FDI; Domestic investment; Institutions; Developing countries; GMM estimators; F21; F23; E22; O17; O16; F30; SUB-SAHARAN AFRICA; FINANCIAL DEVELOPMENT; PRIVATE INVESTMENT; ECONOMIC-GROWTH; CAPITAL FLOW; PANEL-DATA; FDI CROWD; DETERMINANTS; TECHNOLOGY; SPILLOVERS;
D O I
10.1057/s41294-024-00239-9
中图分类号
F [经济];
学科分类号
02 ;
摘要
Despite using a common database for a sample of 46 developing countries to evaluate the impact of foreign direct investment (FDI) inflows on domestic investment (DI), two recent articles on the subject (Morrissey and Udomkerdmongkol in World Dev 40(3):437-445. 10.1016/j.worlddev.2011.07.004, 2012 and Farla et al. in World Dev 88:1-9, 2016. 10.1016/j.worlddev.2014.04.008), produced conflicting results. The current paper contributes to the debate by using a larger panel database of 105 developing countries from 2002 to 2018 while controlling for financial development. We make use of the system generalized method of moments (S-GMM). Our findings do not support a crowding-in effect of FDI; instead, we found that FDI crowded out domestic investment. The findings underscore that institutions played no role in the FDI-DI nexus. Furthermore, there is no strong evidence that good institutions promoted investment in developing countries from 2002 to 2018.
引用
收藏
页码:221 / 261
页数:41
相关论文
共 68 条
[1]   The colonial origins of comparative development: An empirical investigation [J].
Acemoglu, D ;
Johnson, S ;
Robinson, JA .
AMERICAN ECONOMIC REVIEW, 2001, 91 (05) :1369-1401
[2]   Unbundling institutions [J].
Acemoglu, D ;
Johnson, S .
JOURNAL OF POLITICAL ECONOMY, 2005, 113 (05) :949-995
[3]   Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa [J].
Adams, Samuel .
JOURNAL OF POLICY MODELING, 2009, 31 (06) :939-949
[4]   Foreign Investment in Developing Countries: Does it Crowd in Domestic Investment? [J].
Agosin, Manuel ;
Machado, Roberto .
OXFORD DEVELOPMENT STUDIES, 2005, 33 (02) :149-162
[5]   The effects of foreign direct investment on private domestic investment: evidence from developing countries [J].
Al-Sadig, Ali .
EMPIRICAL ECONOMICS, 2013, 44 (03) :1267-1275
[6]   Why doesn't capital flow from rich to poor countries? An empirical investigation [J].
Alfaro, Laura ;
Kalemh-Ozcan, Sebnem ;
Volosovych, Vadym .
REVIEW OF ECONOMICS AND STATISTICS, 2008, 90 (02) :347-368
[7]   Inward FDI and growth: The role of macroeconomic and institutional environment [J].
Alguacil, M. ;
Cuadros, A. ;
Orts, V. .
JOURNAL OF POLICY MODELING, 2011, 33 (03) :481-496
[8]   Do public investment and FDI crowd in or crowd out private domestic investment in Malaysia? [J].
Ang, James B. .
APPLIED ECONOMICS, 2009, 41 (07) :913-919
[9]   SOME TESTS OF SPECIFICATION FOR PANEL DATA - MONTE-CARLO EVIDENCE AND AN APPLICATION TO EMPLOYMENT EQUATIONS [J].
ARELLANO, M ;
BOND, S .
REVIEW OF ECONOMIC STUDIES, 1991, 58 (02) :277-297
[10]   ANOTHER LOOK AT THE INSTRUMENTAL VARIABLE ESTIMATION OF ERROR-COMPONENTS MODELS [J].
ARELLANO, M ;
BOVER, O .
JOURNAL OF ECONOMETRICS, 1995, 68 (01) :29-51