{"id":9346,"date":"2022-07-27T07:02:04","date_gmt":"2022-07-27T07:02:04","guid":{"rendered":"https:\/\/depocen.org\/publications\/can-fdi-be-bad-for-growth\/"},"modified":"2022-07-27T07:02:04","modified_gmt":"2022-07-27T07:02:04","slug":"can-fdi-be-bad-for-growth","status":"publish","type":"publications","link":"https:\/\/depocen.org\/vi\/publications\/can-fdi-be-bad-for-growth\/","title":{"rendered":"Can FDI Be Bad for Growth?"},"content":{"rendered":"<p>We find a curious negative casual relationship between foreign<br \/>\ndirect investment (FDI) and total factor productivity growth (TFPG) across<br \/>\nthe world for the period 1996-2009. The relationship is robust to specifications<br \/>\nin which we instrument for FDI using lagged values and geography variables as<br \/>\nwell as when we control for country and year fixed effects, human capital, the<br \/>\nsize of government, and other country differences. We hypothesize that not all<br \/>\nFDI are the same as channels for technology transfer. We find that higher<br \/>\nnatural resource extraction accounts for the negative relationship between FDI<br \/>\nand TFPG. For countries with no natural resource exports, 10% higher FDI<br \/>\ncauses 0.7-1.9% faster TFPG. The same 10% higher FDI, however, in countries<br \/>\nwith 6% higher natural resource exports reduces TFPG by the same amount.<br \/>\nThese findings have important implications for the middle-income trap and the<br \/>\nrise in FDI for natural resource extraction. As an illustrative example, in<br \/>\nVietnam from 2003-2009, FDI in mining and quarrying grew at 135% per year<br \/>\nwhile TFPG in that sector averaged ?3%. In manufacturing, FDI grew at only<br \/>\n26% per year while TFPG averaged 24%.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[1779,1982,1983],"topic_publications":[],"class_list":["post-9346","publications","type-publications","status-publish","hentry","author_publications-pham-hoang-van","author_publications-quan-minh-quoc-binh","author_publications-nguyen-trong-hoai"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/publications\/9346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/media?parent=9346"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/cate_publications?post=9346"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/author_publications?post=9346"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/vi\/wp-json\/wp\/v2\/topic_publications?post=9346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}