The impact of horizontal and vertical FDI on host's country economic growth Export

@article{citeulike:2939310, abstract = {In this paper, we contribute to the literature investigating the impact of FDI on host country economic growth by distinguishing between the growth effects of horizontal (market seeking) FDI and vertical (efficiency seeking) FDI. Using a new database, we estimate the growth effects of vertical and horizontal US MNE activity into 44 host countries over the period 1983-2003, also using traditional total FDI figures as a benchmark. Controlling for endogeneity and absorptive capacity effects, we find that horizontal and vertical FDI have positive and significant growth effects in developed countries. Moreover, our results indicate a superior growth effect of horizontal FDI over vertical FDI. In line with existing literature, we find no significant effects of horizontal or vertical FDI in developing countries.}, author = {Beugelsdijk, Sjoerd and Smeets, Roger and Zwinkels, Remco}, citeulike-article-id = {2939310}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/j.ibusrev.2008.02.004}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6VGK-4S9RDD6-1/1/2694cdfd4206b9d2cec99a9e12708630}, doi = {10.1016/j.ibusrev.2008.02.004}, journal = {International Business Review}, keywords = {development, dgpolde, fdi, growth}, month = {August}, number = {4}, pages = {452--472}, posted-at = {2009-06-13 15:18:46}, priority = {2}, title = {The impact of horizontal and vertical FDI on host's country economic growth}, url = {http://dx.doi.org/10.1016/j.ibusrev.2008.02.004}, volume = {17}, year = {2008} }

TY - JOUR ID - citeulike:2939310 L3 - citeulike-article-id:2939310 N2 - In this paper, we contribute to the literature investigating the impact of FDI on host country economic growth by distinguishing between the growth effects of horizontal (market seeking) FDI and vertical (efficiency seeking) FDI. Using a new database, we estimate the growth effects of vertical and horizontal US MNE activity into 44 host countries over the period 1983-2003, also using traditional total FDI figures as a benchmark. Controlling for endogeneity and absorptive capacity effects, we find that horizontal and vertical FDI have positive and significant growth effects in developed countries. Moreover, our results indicate a superior growth effect of horizontal FDI over vertical FDI. In line with existing literature, we find no significant effects of horizontal or vertical FDI in developing countries. IS - 4 JF - International Business Review EP - 472 TI - The impact of horizontal and vertical FDI on host's country economic growth VL - 17 SP - 452 KW - development KW - dgpolde KW - fdi KW - growth AU - Beugelsdijk, Sjoerd AU - Smeets, Roger AU - Zwinkels, Remco PY - 2008/08// UR - http://dx.doi.org/10.1016/j.ibusrev.2008.02.004 ER -