Published: 2008
Total Pages: 0
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There is a dearth of empirical literature both on the FDI and economic growth in the developed economies and the role of outward FDI in source country economic growth. [...] Contrary to the earlier period, the great depression in 1929 until the end of seventies when countries were concerned about the role of FDI in domestic economies, since the 1980s countries are increasingly becoming confident about the positive role of FDI in the economic growth process. [...] In the first place this implies that, much of the flows of FDI occurred between developed/industrial countries and second, that the developing countries are the net recipient of FDI. [...] As of 2004, the 25 OECD countries in our study hold 71 percent of world stock of FDI and had been the source of 87 percent world stock of FDI. [...] While Canada, the US and a few others maintained a trend increase in the stock, countries such as New Zealand and Netherlands have increased the stock of FDI dramatically in the 1990s.