Summary
This paper discusses the possible effects of foreign direct investment (FDI) on the current account of the balance of payments. Using data on FDI stocks the effect on the goods and services account is investigated in a cross-section analysis for 30 less developed countries.
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The author wishes to thank J.W. Gunning, H. Linnemann, J.H.A. van Maanen, F. de Roos, H.P. Smit, B. Vogelvang, H. Visser as well as an anonymous referee for giving valuable comments on previous drafts of this article. Any shortcomings are, however, his own responsibility.
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Smits, W.J.B. Foreign direct investment and export and import value. De Economist 136, 91–117 (1988). https://doi.org/10.1007/BF02078540
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DOI: https://doi.org/10.1007/BF02078540