01824cas a2200277 a 4500 AALejournalIMF002518 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859485 1018-5941 BD-DhAAL BD-DhAAL Sayek, Selin. FDI Spillovers, Financial Markets, and Economic Development / Selin Sayek, Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development. Mode of access: Internet Alfaro, Laura. Chanda, Areendam. Kalemli-Ozcan, Sebnem. IMF Working Papers; Working Paper ; No. 2003/186 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/186/001.2003.issue-186-en.xml IMF e-Library