Foreign Direct Investment, Economic Performance and Trade Liberalisation
14 Pages Posted: 9 Feb 2007
In a number of influential papers published by V. N. Balasubramanyam and collaborators during the decade of the 1990s, compelling arguments and supporting evidence was presented to indicate that export-promoting trade and investment strategies attract more and more productive inflows of foreign capital than do import-substituting strategies. This paper revisits these hypotheses in the context of more recent cross-section data and reports evidence to suggest that the earlier findings are robust.
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