search query: @indexterm Foreign investment / total: 1949
reference: 156 / 1949
| Author: | Lee, M. Tcha, M. |
| Title: | The color of money: The effects of foreign direct investment on economic growth in transition economies |
| Journal: | Review of World Economics
2004 : VOL. 140:2, p. 211-229 |
| Index terms: | Foreign investment Direct investment Growth Productivity Central Europe Eastern Europe CIS Transition economies Models Theories |
| Freeterms: | FDI |
| Language: | eng |
| Abstract: | During the initial phase of transformation to a market economy many of the Central and Eastern European countries, the Commonwealth of Independent States (CIS), and the Baltic states experienced an initial decline of output. This paper explains, both theoretically and empirically, why they experienced negative growth (hereafter as: g.) initially, and how some of them have recorded positive g. recently. As a vehicle to transfer technology and managerial skills to the transition economies, as well as to increase capital work, foreign direct investment (FDI) is regarded important. The findings confirm that total factor productivity and GDP in the region grew together with the inflow of FDI, and the marginal contribution of FDI to g. is greater than that of domestic investment. |
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