The linkages between FDI and domestic investment: Unravelling the developmental impact of foreign investment

Arbeitspapier

Despite the recent increase in foreign direct investment (FDI) to African countries, these resources have not had a meaningful impact on economic development because of limited effects on domestic factor markets, especially domestic investment and employment. In this context, this study analyses the two-way linkages between FDI and domestic investment in Sub-Saharan Africa. The results suggest that firstly, FDI crowds in domestic investment, and secondly, countries will gain much from measures aimed at improving the domestic investment climate. Moreover, there are alternatives to resource endowments as a means of attracting foreign investment to nonresource rich countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2007-13

Classification and Topics

• Classification: Wirtschaft ; Investment; Capital; Intangible Capital; Capacity ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business
• Subject: FDI ; private investment ; public investment ; Africa ; Direktinvestition ; Investition ; Beschäftigungseffekt ; Infrastrukturinvestition ; Standortfaktor ; Entwicklung ; Afrika südlich der Sahara

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ndikumana, Leonce ; Verick, Sher
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/64232
• Last update: 10.03.2025, 11:43 AM CET