IMF: foreign investment flows have varying effects

IMF headquarters in Washington, DC

An IMF paper published in July finds that foreign direct investment (FDI) flows are heterogeneous in nature and channel into some sectors of the economy more effectively than others.

By using a dataset which breaks down FDI flows into primary, secondary, and tertiary sector investments, James P. Walsh and Yum Jiangyan, the paper's authors, analyse various qualitative and quantitative determinants of FDI in a sample of emerging market and developed economies. In their analysis, the primary sector

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