Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies
The causes and consequences of foreign direct investment (FDI) in developing countries remains a subject of debate among researchers and policymakers alike. The authors use international data and a new micro-data set of firms in thirteen Southern A...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100927084937 http://hdl.handle.net/10986/3915 |
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okr-10986-3915 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADVANCED ECONOMIES AFFILIATED ORGANIZATIONS AGENCY PROBLEMS AMOUNT OF CAPITAL AVERAGE PRODUCTIVITY BARRIER BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL FLOW CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MOBILITY CAPITAL SHORTAGES CAPITAL STRUCTURE CIVIL WARS COMPARATIVE ECONOMICS COMPETITIVENESS CONFLICTS OF INTERESTS CORPORATE INVESTMENT CORPORATE INVESTORS CURRENCY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DIRECT FOREIGN INVESTMENT DISCLOSURE DIVIDENDS DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMETRICS ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ECONOMICS LITERATURE EXCHANGE RATE EXCHANGE RATES EXPECTED VALUE EXPORTER EXPORTS EXTERNAL FINANCE EXTERNALITY FDI FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FIRM PERFORMANCE FIRM SIZE FIXED COSTS FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OPERATIONS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS GDP GDP PER CAPITA GLOBAL ECONOMY GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOST COUNTRIES HOST COUNTRY HUMAN CAPITAL INCOME INCOME LEVEL INCOME LEVELS INCOMES INDUSTRIAL ECONOMICS INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INFORMATION DISCLOSURE INFRASTRUCTURE DEVELOPMENT INSTITUTIONAL ENVIRONMENT INTELLECTUAL PROPERTY INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT LOCATION DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INWARD FOREIGN DIRECT INVESTMENT LABOR MARKETS LEGAL ENVIRONMENT LIABILITY LOCAL CURRENCY LOCAL ECONOMIES LOCAL MARKET MANUFACTURING FIRMS MARKET DEVELOPMENT MARKET RISKS MARKET SHARES MARKET SIZE MARKET SIZES MICRO DATA MICRO-DATA MULTINATIONAL COMPANIES MULTINATIONAL ENTERPRISE MULTINATIONAL ENTERPRISES MULTINATIONAL FIRMS OPPORTUNISTIC BEHAVIOR OWNERSHIP SHARES POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE EFFECTS POWER OUTAGE PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTION FUNCTION PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL GDP REAL GROWTH RATE REGIONAL INTEGRATION REGULATORY ENVIRONMENTS REGULATORY INFRASTRUCTURE RETURNS RULE OF LAW SALES GROWTH SHAREHOLDER SMALL COUNTRIES SUSTAINABLE GROWTH TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRACK RECORD TRACK RECORDS TRADE POLICIES UNDERDEVELOPED CAPITAL MARKETS URBANIZATION VALUATION VOLATILITY WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY |
| spellingShingle |
ACCOUNTING ADVANCED ECONOMIES AFFILIATED ORGANIZATIONS AGENCY PROBLEMS AMOUNT OF CAPITAL AVERAGE PRODUCTIVITY BARRIER BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL FLOW CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MOBILITY CAPITAL SHORTAGES CAPITAL STRUCTURE CIVIL WARS COMPARATIVE ECONOMICS COMPETITIVENESS CONFLICTS OF INTERESTS CORPORATE INVESTMENT CORPORATE INVESTORS CURRENCY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DIRECT FOREIGN INVESTMENT DISCLOSURE DIVIDENDS DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMETRICS ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ECONOMICS LITERATURE EXCHANGE RATE EXCHANGE RATES EXPECTED VALUE EXPORTER EXPORTS EXTERNAL FINANCE EXTERNALITY FDI FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FIRM PERFORMANCE FIRM SIZE FIXED COSTS FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OPERATIONS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS GDP GDP PER CAPITA GLOBAL ECONOMY GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOST COUNTRIES HOST COUNTRY HUMAN CAPITAL INCOME INCOME LEVEL INCOME LEVELS INCOMES INDUSTRIAL ECONOMICS INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INFORMATION DISCLOSURE INFRASTRUCTURE DEVELOPMENT INSTITUTIONAL ENVIRONMENT INTELLECTUAL PROPERTY INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT LOCATION DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INWARD FOREIGN DIRECT INVESTMENT LABOR MARKETS LEGAL ENVIRONMENT LIABILITY LOCAL CURRENCY LOCAL ECONOMIES LOCAL MARKET MANUFACTURING FIRMS MARKET DEVELOPMENT MARKET RISKS MARKET SHARES MARKET SIZE MARKET SIZES MICRO DATA MICRO-DATA MULTINATIONAL COMPANIES MULTINATIONAL ENTERPRISE MULTINATIONAL ENTERPRISES MULTINATIONAL FIRMS OPPORTUNISTIC BEHAVIOR OWNERSHIP SHARES POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE EFFECTS POWER OUTAGE PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTION FUNCTION PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL GDP REAL GROWTH RATE REGIONAL INTEGRATION REGULATORY ENVIRONMENTS REGULATORY INFRASTRUCTURE RETURNS RULE OF LAW SALES GROWTH SHAREHOLDER SMALL COUNTRIES SUSTAINABLE GROWTH TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRACK RECORD TRACK RECORDS TRADE POLICIES UNDERDEVELOPED CAPITAL MARKETS URBANIZATION VALUATION VOLATILITY WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY Lederman, Daniel Mengistae, Taye Xu, Lixin Colin Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| geographic_facet |
Africa Africa Southern Africa |
| relation |
Policy Research working paper ; no. WPS 5416 |
| description |
The causes and consequences of foreign
direct investment (FDI) in developing countries remains a
subject of debate among researchers and policymakers alike.
The authors use international data and a new micro-data set
of firms in thirteen Southern African Developing Countries
(SADCs) to investigate the benefits and determinants of FDI
in this region. FDI appears to have facilitated local
development in the SADC region. Foreign firms tend to
perform better than domestic firms, tend to be larger, are
located in richer and better-governed countries and in
countries with more competitive financial intermediaries,
and they are more likely to export than domestic firms. They
also exhibit positive spillover effects to domestic firms.
Relying on a standard model to predict the country-level FDI
inflows per capita, the authors find that SADC is attracting
their expected level of FDI inflows, at least relative to
its income level, human capital, demographic structure,
institutions, and economic track record. There are some
differences between SADC and the rest of the world in FDI
behavior: in SADC, the income level is less important and
openness more so. The authors use two comparison groups to
compare with SADC to shed light on why other regions have
attracted more FDI per capita than SADC. The factors that
explain SADC s low FDI inflows are economic fundamentals
(e.g., previous growth rates, average income, phone density,
and the adult share of population). |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lederman, Daniel Mengistae, Taye Xu, Lixin Colin |
| author_facet |
Lederman, Daniel Mengistae, Taye Xu, Lixin Colin |
| author_sort |
Lederman, Daniel |
| title |
Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| title_short |
Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| title_full |
Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| title_fullStr |
Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| title_full_unstemmed |
Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies |
| title_sort |
microeconomic consequences and macroeconomic causes of foreign direct investment in southern african economies |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100927084937 http://hdl.handle.net/10986/3915 |
| _version_ |
1764389000392474624 |
| spelling |
okr-10986-39152021-04-23T14:02:13Z Microeconomic Consequences and Macroeconomic Causes of Foreign Direct Investment in Southern African Economies Lederman, Daniel Mengistae, Taye Xu, Lixin Colin ACCOUNTING ADVANCED ECONOMIES AFFILIATED ORGANIZATIONS AGENCY PROBLEMS AMOUNT OF CAPITAL AVERAGE PRODUCTIVITY BARRIER BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL FLOW CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MOBILITY CAPITAL SHORTAGES CAPITAL STRUCTURE CIVIL WARS COMPARATIVE ECONOMICS COMPETITIVENESS CONFLICTS OF INTERESTS CORPORATE INVESTMENT CORPORATE INVESTORS CURRENCY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DIRECT FOREIGN INVESTMENT DISCLOSURE DIVIDENDS DOMESTIC FIRM DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMETRICS ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ECONOMICS LITERATURE EXCHANGE RATE EXCHANGE RATES EXPECTED VALUE EXPORTER EXPORTS EXTERNAL FINANCE EXTERNALITY FDI FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FIRM PERFORMANCE FIRM SIZE FIXED COSTS FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OPERATIONS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS GDP GDP PER CAPITA GLOBAL ECONOMY GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOST COUNTRIES HOST COUNTRY HUMAN CAPITAL INCOME INCOME LEVEL INCOME LEVELS INCOMES INDUSTRIAL ECONOMICS INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INFORMATION DISCLOSURE INFRASTRUCTURE DEVELOPMENT INSTITUTIONAL ENVIRONMENT INTELLECTUAL PROPERTY INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT FLOWS INVESTMENT LOCATION DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INWARD FOREIGN DIRECT INVESTMENT LABOR MARKETS LEGAL ENVIRONMENT LIABILITY LOCAL CURRENCY LOCAL ECONOMIES LOCAL MARKET MANUFACTURING FIRMS MARKET DEVELOPMENT MARKET RISKS MARKET SHARES MARKET SIZE MARKET SIZES MICRO DATA MICRO-DATA MULTINATIONAL COMPANIES MULTINATIONAL ENTERPRISE MULTINATIONAL ENTERPRISES MULTINATIONAL FIRMS OPPORTUNISTIC BEHAVIOR OWNERSHIP SHARES POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE EFFECTS POWER OUTAGE PRICE STABILITY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTION FUNCTION PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL GDP REAL GROWTH RATE REGIONAL INTEGRATION REGULATORY ENVIRONMENTS REGULATORY INFRASTRUCTURE RETURNS RULE OF LAW SALES GROWTH SHAREHOLDER SMALL COUNTRIES SUSTAINABLE GROWTH TECHNOLOGY TRANSFER TOTAL FACTOR PRODUCTIVITY TRACK RECORD TRACK RECORDS TRADE POLICIES UNDERDEVELOPED CAPITAL MARKETS URBANIZATION VALUATION VOLATILITY WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY The causes and consequences of foreign direct investment (FDI) in developing countries remains a subject of debate among researchers and policymakers alike. The authors use international data and a new micro-data set of firms in thirteen Southern African Developing Countries (SADCs) to investigate the benefits and determinants of FDI in this region. FDI appears to have facilitated local development in the SADC region. Foreign firms tend to perform better than domestic firms, tend to be larger, are located in richer and better-governed countries and in countries with more competitive financial intermediaries, and they are more likely to export than domestic firms. They also exhibit positive spillover effects to domestic firms. Relying on a standard model to predict the country-level FDI inflows per capita, the authors find that SADC is attracting their expected level of FDI inflows, at least relative to its income level, human capital, demographic structure, institutions, and economic track record. There are some differences between SADC and the rest of the world in FDI behavior: in SADC, the income level is less important and openness more so. The authors use two comparison groups to compare with SADC to shed light on why other regions have attracted more FDI per capita than SADC. The factors that explain SADC s low FDI inflows are economic fundamentals (e.g., previous growth rates, average income, phone density, and the adult share of population). 2012-03-19T18:42:05Z 2012-03-19T18:42:05Z 2010-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100927084937 http://hdl.handle.net/10986/3915 English Policy Research working paper ; no. WPS 5416 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Southern Africa |