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FDI banking crisis and growth direct and spill over effects

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Document pages: 4 pages

Abstract: This study suggests a new decomposition of the effect of Foreign DirectInvestment (FDI) on long-term growth in developing countries. It reveals thatFDI not only have a positive direct effect on growth, but also increase thelatter by reducing the recessionary effect resulting from a banking crisis.Even more, they reduce its occurrence. JEL: F65, F36, G01, G15

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