Abstract
FDI–growth and development nexus is a widely researched topic but the empirical findings are mixed. It has been asserted that this could be due to differences in econometric approaches, study periods and samples. These assertions could be just the tip of the iceberg, as there are other pertinent issues that are yet to be clarified. First, the analysis of FDI-induced growth and development has been widely conducted using aggregate FDI data, that is, the total FDI in the host country. The major assumption behind using aggregate FDI data is that all foreign investors have a uniform impact on the growth or development of the host country. Yet in reality, this might not be true as the motives of the foreign investors might differ and consequently their effect on the growth or development of the host country. Second, an analysis of FDI-induced growth and development on regional blocs. Although structural relationships may vary among host countries due to the variations in country-specific factors, analysis on regional blocks assumes homogeneity among countries in the same region...
Ph.D. (Economics)