外文翻译原文--浅析外国直接投资与经济增长关系.doc

外文翻译原文-浅析外国直接投资与经济增长关系 Applied Economics 2009 41 16211641 An analysis of the relationship between foreign direct investment and economic growth Jonathan A Battena and Xuan Vinh Vob aGraduate School of Management Macquarie University Sydney NSW Australia Department of Finance Hong Kong University of Science Technology Kowloon Hong Kong bDepartment of Economics University of NSW Sydney Australia Employing a panel data modelling technique we contribute to two critical research issues what is the link between Foreign Direct Investment FDI and economic growth and does the relationship change under different educational institutional and economic conditions Overall the analysis supports the view that FDI has a stronger positive impact on economic growth in countries with a higher level of education attainment openness to international trade and stock market development and a lower rate of population growth and lower level of risk Thus countries undertaking reform of cross-border capital restrictions and controls and initiating other policy aimed at encouraging FDI need to ensure that broader social policy objectives such as education and institutional reform are also undertaken to leverage the benefits from FDI I Introduction While some policy makers may remain circumspect about the long-term benefits arising from inward Worldwide the development of deeper and more or inbound portfolio investment often citing the sophisticated domestic and international financial dangers to domestic financial system stability arising markets improvements in technology and informa- from its speculative component FDI by virtue of its tion transmission have contributed to enhanced longer term nature is regarded more favourably economic and financial integration To capture Academic investigation of the economic impact from many of the economic benefits arising from these FDI flows also generally support the view of positive processes many countries especially developing economic benefits achieved through higher levels of countries have initiated reform agendas designed to growth Nonetheless Gao 2005 amongst others improve the efficiency and the scope of their domestic notes that while increased integration has given rise financial systems and remove structural impediments to FDI with host countries benefiting from increases that may otherwise impede cross-border capital in living standards one should still remain cautious flows Consequently in recent times there has been of the often-observed positive correlation between a surge in the flows of both Foreign Direct inward FDI and subsequent increases in economic Investment FDI and portfolio investment with growth since the relation may not be causal Better FDI now accounting for more than 60 of private understanding this relation therefore remains a capital flows Carkovic and Levine 2002 Alfaro critical empirical question since policy in support of et al 2004 FDI strategies may otherwise fail to achieve desired Corresponding author E-mail jabattenusthk Applied Economics ISSN 00036846 printISSN 14664283 online 2009 Taylor Francis 1621 httpinformaworldcom DOI 10108000036840701493758 1622 J A Batten and X V Vo social and economic outcomes Mullen and Williams time-series dimension of the data instead of utilizing 2005 also make this point when questioning the purely cross-sectional estimators efficacy of regional development strategies focused on The remainder of this article is organized as attracting foreign investment although their analysis follows Section II reviews the literature on the of US state-led FDI does highlight its importance in impact of FDI on economic growth and introduces stimulating regions within well-integrated developed the theoretical framework Section III develops the economies model assessing the impacts of FDI on economic The objective of this study is to once again revisit growth describes the econometric methodology and the link between growth and FDI and it does so by Section IV describes the data Section V reports the using a comprehensive panel data set of 79 countries empirical results Finally Section VI allows for some and longer period 19802003 than other studies concluding comments which have taken single country or regional perspec- tives In addition we provide further insights by examining an extensive range of economic financial institutional and policy conditions under which FDI II Linking FDI and Economic Growth may affect economic growth This study makes three important contributions first the use of panel data Background sets applied to an extensive range of 79 countries Theoretically FDI has been shown to boost eco- enable the extension of recent published studies in nomic growth through technology transfer and FDI eg Li and Liu 2005 Schneider 2005 through the examination of an extensive array of FDI diffusion Dimelis 2005 Schneider 2005 spillover indicators Specifically the gross stock of FDI effects Wang and Yu 2007 productivity gains and assets and liabilities stock of FDI liabilities gross the introduction of new processes managerial skills flows of FDI assets and liabilities and inflows of FDI and know-how to host countries Girma 2005 Li as a share of GDP are examined The need for and Liu 2005 Lin and Yeh 2005 A number of adopting stock as well as flow measures is that stock studies including those by Grossman and Helpman measures accommodate the fluctuations present in 1991 Barro and Sala-i-Martin 1995 and Hermes flows over the short run and variation over the and Lensink 2003 suggest that FDI plays an long run important role in modernizing the economy and Second while economic theories and some pre- promoting economic growth in host countries vious empirical evidence suggest that FDI will only especially in developing countries In the case of the have a positive growth effect under certain institu- latter it is also critical to coordinate foreign aid with tional and policy regimes we examine an extensive follow-up FDI to imize its impact Blaise 2005 array of interaction terms to determine those key In addition FDI can create an international economic financial institutional and policy condi- network that optimizes the movement of domestic tions under which FDI supports growth Specifically products across borders creates cost savings and we examine whether FDI has stronger and positive related scale and scope economies for corporations impacts on economic growth when countries have Not all corporations engage in FDI or choose to higher levels of real per capita GDP higher levels of internationalize there is an extensive separate litera- educational attainment lower population growth ture that investigates corporate motivations and rates larger government size higher levels of inter- rationale The recent study by Wagner 2007 is national trade lower inflation higher levels of bank illustrative and demonstrates that only the more and stock market development and finally lower productive German firms choose to serve foreign country risk markets through exports and the most productive Third the use of newly developed panel techniques among this group will undertake FDI control the simultaneity bias that may have existed in Nonetheless the available empirical evidence earlier studies This is induced by the standard suggests a complex set of interactions between FDI practice of including lagged dependent variables in and observable economic factors Kottardi 2005 growth regressions and the omission of country- which may be country or region specific Many specific factors Since each of these econometric country studies which deal with the productivity biases is a serious concern in the assessment of the effects of FDI spillovers on firms or plants using FDI economic growth nexus applying panel micro level data provide positive results on the techniques enhance the level of statistical confidence role of FDI with respect to stimulating economic possible with the empirical results Furthermore growth Positive effects from FDI spillovers the panel approach allows the exploitation of the have been found for example in Mexico Social factors FDI and economic growth 1623 Blomstrom and Persson 1983 Blomstrom and less-developed countries Another perspective by Wolff 1994 Kokko 1994 Uruguay Kokko et al Choi 2007 demonstrates that income inequality 1996 EU accession countries Janicki and Wunnava increases with FDI stocks as a percentage of GDP 2004 and China Chuang and Hsu 2004 Other increase whereas increases in per capita GDP and research by Hejazi and Safarian 1999 for a number real per capita GDP growth rate reduce income of countries demonstrates that spillover effects inequality in a country Overall the diversity of these increase significantly with the inclusion of FDI in findings highlight the difficulty in making generalized the standard model thereby explaining the link to comments on the nexus between FDI and economic total factor productivity and hence economic growth and the benefits that may arise based on growth While Dollar and Kraay 2001 2004 are simple correlation-based analysis Our contribution aware of the shortcomings of the cross-sectional offers further insights into these relationships by approach they still find evidence to support a examining in more detail than other recent studies the positive relationship between an increase in trade extensive range of economic financial institutional flows FDI and higher growth rates More recent and policy conditions under which FDI may affect studies on the miracle of Portugal Barbosa et al economic growth 2004 and China Yao 2006 link the importance of export opportunities arising from FDI to sustainable A simple theoretical framework growth Others such as Lubker et al 2002 remain unconvinced about the validity of many of these To understand these relationships in a theoretical results due to the construction of data as well as their setting begin by considering the relationship between theoretical basis FDI and economic performance through interactions On the other hand some authors find no trace of with domestic investment and wider spillover effects spillover effects in some country studies or if present The domestic economy then has technical progress as the economic effect is minimal For example while a result of capital deepening in the form of an Blomstrom 1986 finds that Mexican sectors with a increase in the number of types of capital goods higher degree of foreign ownership exhibit faster available as suggested by Romer 1990 Grossman productivity growth their study and similar studies and Helpman 1991 Barro and Sala-i-Martin 1995 suffers from a critical identification problem if Borensztein et al 1998 Berthelemy and Demurger foreign investment gravitate towards more productive 2000 and Agenor 2003 industries the observed positive correlation will Thus in the spirit of these studies suppose that the overstate the positive impact of FDI on growth economy produces a single consumption good Aitken and Harrisons 1999 study of plant level data according to the following technology relation for Venezuela solves this problem and subsequently Y 1 t AH K e1T t t finds no evidence of a positive technology spillover This result was consistent with Haddad and where A represents the exogenous state of the Harrisons 1993 study utilizing panel data for environment H represents human capital and K Morocco which also concludes that the net effect represents physical capital The state of the environ- of FDI on productivity is small In the case of Aitken ment in A comprises various control and policy and Harrisons 1999 study they find that FDI raises variables influencing the level of productivity in the productivity within plants that receive the investment economy Assume that human capital H is a given but lowers that of domestically owned plants a endowment while physical capital consists of an finding that contradicts spillover theory aggregate of different varieties of capital goods Several empirical studies indicate that the growth Hence allow capital accumulation to take place effect of FDI is strongly dependent on the institu- through the expansion of a number of different tional circumstances of the host or receiving countries varieties of capital goods each one denoted by x j as Hermes and Lensink 2003 While others find that in Ethier 1982 such that at each instant in time the FDI inflow is positively associated with economic stock of domestic capital is given by Z growth only when countries have previously achieved N 1 e1T 1 a certain level of wealth Blomstrom et al 1994 K xej T dj e2T education Borensztein et al 1998 or financial 0 development Hermes and Lensink 2003 Alfaro That is total capital is a composite of a continuum of et al 2004 On the other hand Carkovic and varieties of capital goods each one being denoted by Levine 2002 find that these results are not robust x j while N is the total