NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages

Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan, Selin Sayek

NBER Working Paper No. 12522
Issued in September 2006

---- Acknowledgements -----

An earlier version of this paper circulated under the title "FDI Spillovers, Financial Markets and Economic Development." Corresponding author: Laura Alfaro, Harvard Business School, 263 Morgan Hall, Boston, MA 02163, lalfaro@hbs.edu. Areendam Chanda, Department of Economics, 2107 CEBA, Louisiana State University, Baton Rouge, LA 70803, achanda@lsu.edu. Sebnem Kalemli-Ozcan, Department of Economics, University of Houston, Houston, Texas, 77204, Sebnem.Kalemli-Ozcan@mail.uh.edu. Selin Sayek, Department of Economics, Bilkent University, Bilkent Ankara 06800 Turkey, sayek@bilkent.edu.tr. We are grateful to participants at Stanford Institute for Theoretical Economics Summer Workshop, 2006 NEUDC, 2006 Midwest Macroeconomic Meetings, 2006 Society of Economic Dynamics Meetings, 2006 DEGIT Conference at Hebrew University, 2006 European Economic Association Annual Congress, 2007 Econometric Society Winter Meetings, 2006 Euro-Latin Study Network on Integration and Trade (ELSNIT) and the 2007 ACES Annual Meeting and seminars at Bilkent, Oregon and Louisiana State Universities for useful comments and suggestions. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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