English

FDI, banking crisis and growth: direct and spill over effects

General Economics 2019-04-11 v1 Economics

Abstract

This study suggests a new decomposition of the effect of Foreign Direct Investment (FDI) on long-term growth in developing countries. It reveals that FDI not only have a positive direct effect on growth, but also increase the latter by reducing the recessionary effect resulting from a banking crisis. Even more, they reduce its occurrence. JEL: F65, F36, G01, G15

Keywords

Cite

@article{arxiv.1904.04911,
  title  = {FDI, banking crisis and growth: direct and spill over effects},
  author = {Brahim Gaies and Khaled Guesmi and Stéphane Goutte},
  journal= {arXiv preprint arXiv:1904.04911},
  year   = {2019}
}