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Continuity Of Fdi: Determinants And Effects On Growth, Loredana Popescu

Honors Theses

The literature on foreign direct investment (FDI) provides evidence on the relation from FDI to growth in the presence of some absorptive qualities such as existing level of development, financial market depth, trade policies and human capital thresholds. The analysis of FDI inflows in the literature so far does not include an investigation of discontinuity, or of lack of steady positive flows. Discontinuities are expected to depend on development levels and risk factors in the host country as they proxy for attractiveness of the target to the foreign investor. This paper investigates the continuity of FDI with its determinants and …