Université de Lausanne
Ecole des HEC
Département d'économétrie et d'économie politique

Jeudi 7 mai 2009, 13h00
Extranef, Dorigny, salle 126

Delfim GOMES NETO
(Universidade de Vigo, Spain)

Financial globalization, convergence and growth

Abstract
Using a panel dataset covering the period 1970-2004 and 96 countries, we provide empirical evidence that the ratio foreign direct investment over total foreign liabilities has a positive effect on growth, directly and through convergence. Developing countries benefit relatively more as their initial GDP is smaller. These results are consistent with a neoclassical growth model with credit constraints, in which foreign direct investment affects growth through diffusion of technology and innovation.

Web site of the seminar (with paper online): http://www.hec.unil.ch/deep/evenements-english/e-sem-all-2008-09.htm