TY  - JOUR
AU  - Blonigen,Bruce A.
AU  - Wang,Miao
TI  - Inappropriate Pooling of Wealthy and Poor Countries in Empirical FDI Studies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10378
PY  - 2004
Y2  - March 2004
UR  - http://www.nber.org/papers/w10378
L1  - http://www.nber.org/papers/w10378.pdf
N1  - Author contact info:
Bruce Blonigen
Department of Economics
1285 University of Oregon
Eugene, OR 97403-1285
Tel: 541/346-4680
Fax: 541/346-1243
E-Mail: bruceb@uoregon.edu
AB  - This paper examines the question of whether less-developed countries' (LDCs') experiences with foreign direct investment (FDI) systematically different from those of developed countries (DCs). We do this by examining three types of empirical FDI studies that typically do not distinguish between LDCs and DCs in their analysis. First, we find that the underlying factors that determine the location of FDI activity across countries vary systematically across LDCs and DCs in a way that is not captured by current empirical models of FDI. Second, the effect of FDI on economic growth is one that is only supported for LDCs in the aggregate data, not DCs. Third, the evidence suggests that FDI is much less likely to crowd out (more likely to crowd in) domestic investment for LDCs than DCs.
ER  -