Abdelaal Mahmoud, Ashraf (2010): FDI, local Financial Markets, Employment and poverty alleviation. Published in: DEVELOPMENT ECONOMICS eJOURNAL , Vol. Vol. 2, No. 134 (30. July 2010)
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This paper examines the indirect linkages among foreign direct investment (henceforth, FDI) and poverty reduction, where so far there are few studies attempted to analyze empirically these linkages. Yet I have a question: do we believe that FDI inflows are able to contribute to higher growth and employment in poor countries? I argue yes. Behavior of FDI says something fundamental. FDI inflows vary across international borders and condition by host country environment; therefore, FDI can contribute to higher growth and employment in poor countries but only under certain circumstances, “Roll out the red carpet for foreign investors and they will come”. Countries with better financial systems, healthy business environment and human development are able to attract more FDI and exploit it more efficiently. Empirical analysis using panel data of 62 countries, from 1996 to 2007, shows that FDI appears regular to be a key source of employment and has a favorable impact on economic growth of low-income countries if interacted with monetary and non monetary variables.
|Item Type:||MPRA Paper|
|Commentary on:||Abdel Aal Mahmoud, Ashraf (2010): FDI, local Financial Markets, employment and poverty alleviation.|
|Original Title:||FDI, local Financial Markets, Employment and poverty alleviation|
|Keywords:||FDI; Financial market; Poverty; Employment.|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
F - International Economics > F0 - General > F02 - International Economic Order
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration
|Depositing User:||Abdelaal mahmoud|
|Date Deposited:||25. Apr 2011 23:35|
|Last Modified:||19. Feb 2013 10:41|
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Abdel Aal Mahmoud, Ashraf
FDI, local Financial Markets, employment and poverty alleviation. (deposited 04. Jul 2010 17:50)
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