Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth
Summary. This study analyzes 80 countries from 1979 to 1998 and finds that foreign direct investment and equity foreign portfolio investment do not automatically boost economic growth. Instead, their positive effects depend on a country's absorptive capacity—particularly its financial and institutional development. Stronger institutions enable countries to effectively use foreign investment for growth.
Cite this article
Durham, J. B.. (2004). Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3402617
Durham, J. Benson. “Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth.” SSRN Electronic Journal, 2004. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3402617.
Durham, J. Benson. 2004. “Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth.” SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3402617.
@article{durham-2004-absorptive-capacity-effects-foreign-direct,
title = {Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth},
author = {J. Benson Durham},
journal = {SSRN Electronic Journal},
year = {2004},
url = {https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3402617}
}
TY - JOUR TI - Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth AU - J. Benson Durham JO - SSRN Electronic Journal PY - 2004 UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3402617 ER -
Details
- Countries
- United States
- Regions
- North America
- Categories
- policy, funding, general-innovation
- Added
- 2026-04-28