01817cas a2200265 a 4500 AALejournalIMF004528 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853278 1018-5941 BD-DhAAL BD-DhAAL Lee, Jong-Wha. How Does Foreign Direct Investment Affect Economic Growth / Jong-Wha Lee, Jose De Gregorio, Eduardo Borensztein. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (26 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 We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms. Mode of access: Internet Borensztein, Eduardo. De Gregorio, Jose. IMF Working Papers; Working Paper ; No. 1994/110 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/110/001.1994.issue-110-en.xml IMF e-Library