Impact of Foreign Direct Investment and Openness Degree on Economic Growth for Latin America 1980-2010
DOI:
https://doi.org/10.25115/eea.v35i1.2444Keywords:
Economic Growth, Foreign Direct Investment, Openness, Dynamic Models.Abstract
In this paper, we study the impact of the foreign investment and the openness degree on the economic growth in nine countries of Latin America 1980-2010. To do this, we consider a dynamic panel data model. The results show that both the openness and domestic investment have positive and significant impact on GDP per capita both in the short- run and long term. FDI has only a short-term effect, which suggesting the possible existence of adjustment costs that outweighs the positive and expansive effects.Downloads
References
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