Does F.D.I. generate economic Growth? The case of Spain

Does F.D.I. generate economic Growth? The case of Spain

Let’s compare a paper released in January 2018 with an old article published in the 2014 by Huffington Post and prepared by Vincenzo Atella: Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied to Spain.

In fact, it is often asserted with confidence that Foreign Direct Investment (FDI) is beneficial for economic growth in the host economy.

Empirical evidence has been mixed, and there remain gaps in the literature. During the observation period 1984–2010, FDI rose significantly, and Spain offered ideal conditions for FDI to unfold its hypothesized positive effects on growth. The focus is a horse race between various potential explanatory variables, including the neglected role of bank credit for the real economy. The results are robust and clear: the favorable Spanish circumstances yield no evidence for FDI to stimulate economic growth.

More information in the online video, you can reach (in Italian version) at https://youtu.be/kfk-puiUz3E . Have a good view!