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Financial-sector foreign direct investment and host countries: new and old lessons
Many of the lessons from foreign direct investment (FDI) research on manufacturing and extractive resource industries are applicable to FDI research on the financial sector. This paper summarizes the main findings and policy themes of FDI research, with a primary focus on the implications of FDI for host countries, especially emerging market economies. I review evidence of technology transfers, productivity spillovers, wage effects, macroeconomic growth, and fiscal and tax concerns. Throughout this paper, I stress that parallel findings often arise from studies of general FDI and studies of financial-sector FDI. I also emphasize important differences between the effects of FDI in these sectors, especially with regard to local institution building and business cycles. These differences-more so than the similarities-should be the focus of research efforts.
Cite this item
Linda S. Goldberg, Financial-sector foreign direct investment and host countries: new and old lessons, Federal Reserve Bank of New York, Staff Reports 183, 01 Apr 2004.
Note: For a published version of this report, see Linda S. Goldberg, "Financial Sector FDI and Host Countries: New and Old Lessons," Federal Reserve Bank of New York Economic Policy Review 13, no. 1 (March 2007): 1-17.
- F3 - International Economics - - International Finance
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
Keywords: foreign investments; technology; economic development; financial services industry
This item with handle RePEc:fip:fednsr:183
is also listed on EconPapers
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