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FDI and Industry in Developed and Developing Countries: A Comparative Dynamic Panel Analysis

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Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 758))

Abstract

The paper investigates the sector-specific dynamic impacts of FDI inflow on industrial productivity on a comparative basis between developed and developing countries. Different studies observe both positive and negative impacts of FDI on economic growth. However, the existing evidences have not cleared the sector-wise impact of FDI, particularly in industrial sector separately in developing and developed economies. We explore and compare the dynamic relationship between FDI and industrial performances in two groups of countries using data from UNCTAD and World Bank over the period of 1970–2015 in the dynamic panel framework. The stochastic properties of variables are looked into by carrying out various panel unit root tests followed by the GMM estimation. Empirical findings imply that FDI inflows significantly promote industrial growth in both groups of countries; however, the relationship is bi-directional in developing countries and the degree of influence is higher in developed nations.

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Author information

Authors and Affiliations

  1. Department of Humanities and Social Sciences, National Institute of Technology Durgapur, Durgapur, 713209, West Bengal, India

    Madhabendra Sinha & Partha Pratim Sengupta

Authors
  1. Madhabendra Sinha
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  2. Partha Pratim Sengupta
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Corresponding author

Correspondence to Madhabendra Sinha .

Editor information

Editors and Affiliations

  1. Department of Computer Science and Engineering, Sri Sivani College of Engineering, Srikakulam, Andhra Pradesh, India

    Janmenjoy Nayak

  2. Machine Intelligence Research Labs (MIR Labs), Scientific Network for Innovation and Research Excellence, Washington, USA

    Ajith Abraham

  3. Department of Mechanical Engineering, Sri Sivani College of Engineering, Srikakulam, Andhra Pradesh, India

    B. Murali Krishna

  4. Department of Electrical and Electronics Engineering, Sri Sivani College of Engineering, Srikakulam, Andhra Pradesh, India

    G. T. Chandra Sekhar

  5. Department of Computer Science and Technology, Indian Institute of Engineering Science and Technology (IIEST), Shibpur, Howrah, West Bengal, India

    Asit Kumar Das

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Sinha, M., Sengupta, P.P. (2019). FDI and Industry in Developed and Developing Countries: A Comparative Dynamic Panel Analysis. In: Nayak, J., Abraham, A., Krishna, B., Chandra Sekhar, G., Das, A. (eds) Soft Computing in Data Analytics . Advances in Intelligent Systems and Computing, vol 758. Springer, Singapore. https://doi.org/10.1007/978-981-13-0514-6_46

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