FDI and economic growth: New evidence on the role of financial markets

• Main Authors: Azman-Saini, W.N.W., Law, Siong Hook, Ahmad, Abd Halim @ Hamilton
• Format: Article
• Language: English
• Published: Elsevier 2010
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/12579/1/FDI.pdf; http://repo.uum.edu.my/12579/; http://dx.doi.org/10.1016/j.econlet.2010.01.027

This study uses a threshold regression model and finds new evidence that the positive impact of FDI on growth "kicks in" only after financial market development exceeds a threshold level.Until then, the benefit of FDI is non-existent.