Does Foreign Aid increase Foreign Direct Investment?

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Standard

Does Foreign Aid increase Foreign Direct Investment? / Selaya, Pablo; Sunesen, Eva Rytter.

I: World Development, Bind 40, Nr. 11, 2012, s. 2155–2176.

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

Harvard

Selaya, P & Sunesen, ER 2012, 'Does Foreign Aid increase Foreign Direct Investment?', World Development, bind 40, nr. 11, s. 2155–2176. https://doi.org/10.1016/j.worlddev.2012.06.001

APA

Selaya, P., & Sunesen, E. R. (2012). Does Foreign Aid increase Foreign Direct Investment? World Development, 40(11), 2155–2176. https://doi.org/10.1016/j.worlddev.2012.06.001

Vancouver

Selaya P, Sunesen ER. Does Foreign Aid increase Foreign Direct Investment? World Development. 2012;40(11):2155–2176. https://doi.org/10.1016/j.worlddev.2012.06.001

Author

Selaya, Pablo ; Sunesen, Eva Rytter. / Does Foreign Aid increase Foreign Direct Investment?. I: World Development. 2012 ; Bind 40, Nr. 11. s. 2155–2176.

Bibtex

@article{07039f04bec3499da6e3d5092d0904c4,
title = "Does Foreign Aid increase Foreign Direct Investment?",
abstract = "We examine the idea that aid and FDI are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its overall level of efficiency.",
keywords = "Faculty of Social Sciences, Development aid, foreign direct investment (FDI), foreign capital for development, aid effectiveness",
author = "Pablo Selaya and Sunesen, {Eva Rytter}",
note = "JEL classifications: F21; F35; O19.",
year = "2012",
doi = "10.1016/j.worlddev.2012.06.001",
language = "English",
volume = "40",
pages = "2155–2176",
journal = "World Development",
issn = "1873-5991",
publisher = "Pergamon Press",
number = "11",

}

RIS

TY - JOUR

T1 - Does Foreign Aid increase Foreign Direct Investment?

AU - Selaya, Pablo

AU - Sunesen, Eva Rytter

N1 - JEL classifications: F21; F35; O19.

PY - 2012

Y1 - 2012

N2 - We examine the idea that aid and FDI are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its overall level of efficiency.

AB - We examine the idea that aid and FDI are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its overall level of efficiency.

KW - Faculty of Social Sciences

KW - Development aid

KW - foreign direct investment (FDI)

KW - foreign capital for development

KW - aid effectiveness

U2 - 10.1016/j.worlddev.2012.06.001

DO - 10.1016/j.worlddev.2012.06.001

M3 - Journal article

VL - 40

SP - 2155

EP - 2176

JO - World Development

JF - World Development

SN - 1873-5991

IS - 11

ER -

ID: 38176850