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FDI Inflow and Human Development: Analysis of FDI's Impact on Host Countries' Social Welfare and Infrastructure
Author(s) -
Lehnert Kevin,
Benmamoun Mamoun,
Zhao Hongxin
Publication year - 2013
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21544
Subject(s) - foreign direct investment , welfare , host (biology) , panel data , corporate governance , business , developing country , international economics , economics , international trade , economic growth , market economy , finance , macroeconomics , ecology , econometrics , biology
We examine the impact of foreign direct investment (FDI) and the mediating effects of country national governance on the welfare and knowledge infrastructure of host countries. Based on a five‐year anchored panel data of 175 countries producing over 9,000 observations, we find that in general FDI has a positive influence on both host country welfare and knowledge infrastructure and the national governance positively mediates these relationships. 1 © 2013 Wiley Periodicals, Inc.