Does FDI cause development? The ambiguity of the evidence and why it matters


The contribution that inward foreign direct investment (FDI) makes to development has been examined in a number of contexts including the relationship between inward FDI and new firm formation; growth; innovation, exports and competitiveness. However, no debate has proved so contentious, or so long lasting as that concerning the extent to which inward FDI stimulates productivity growth in the host country.

Publication DOI:
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Aston Business School
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in European journal of developmental research. The definitive publisher-authenticated version Narula, R., & Driffield, N. (2012). Does FDI cause development? The ambiguity of the evidence and why it matters. European journal of developmental research, 24(1), 1-7 is available online at:
Uncontrolled Keywords: FDI,linkages,externalities,spillovers,government policies,development,Geography, Planning and Development,Development
Full Text Link: http://www.palg ... jdr201151a.html
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2012-02
Authors: Narula, Rajneesh
Driffield, Nigel ( 0000-0003-1056-3117)



Version: Accepted Version

Export / Share Citation


Additional statistics for this record