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The Political Economy of U.S. Direct Investment in East Asian NICs, 1966--2000

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  • Uk Heo
  • Sung Deuk Hahm

Abstract

This paper examines the role of FDI from the United States in the economic performance of East Asian NICs for 1966--2000. To this end, we draw our argument of the role of FDI from the modernization--dependency debate. Then, we test the economic effects of U.S. direct investment on economic growth in East Asian NICs using a neoclassical production function model that captures the economic impacts of both foreign and domestic investment on economic growth. Our empirical results show that U.S. direct investment has a positive and significant effect on economic growth in East Asian NICs.

Suggested Citation

  • Uk Heo & Sung Deuk Hahm, 2007. "The Political Economy of U.S. Direct Investment in East Asian NICs, 1966--2000," International Interactions, Taylor & Francis Journals, vol. 33(2), pages 119-133, April.
    • Handle: RePEc:taf:ginixx:v:33:y:2007:i:2:p:119-133
    DOI: 10.1080/03050620701277723
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    1. World Bank, 2000. "World Development Indicators 2000," World Bank Publications - Books, The World Bank Group, number 13828.
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    1. Ben Slimane, Mehdi & Huchet-Bourdon, Marilyne & Zitouna, Habib, 2016. "The role of sectoral FDI in promoting agricultural production and improving food security," International Economics, Elsevier, vol. 145(C), pages 50-65.

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