The varying impacts of sectoral foreign direct investments on Philippine economic growth
Date
2006-10-24
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Abstract
To determine whether FDI allocated among primary, industrial, and services sectors have distinct features in spurring economic growth, this study utilized Ordinary Least Squares (OLS) method using Philippine time-series data for the period 1974 to 2003. The empirical analyses showed that the expected positive impact on economic growth of FDI in the industrial sector is realized in the export sector while FDI in the primary reveals a negative impact as caused by privately financed rural infrastructure, modernized technology, new techniques, and employment generation. Finally, FDI channeled in the services sector contribute to growth through the provision of infrastructure services and employment creation.
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Keywords
Foreign direct investment, Foreign investment, Direct investment, Investment, Economic growth, International trade, Trade