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FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: …

Journal of Governance and Regulation / Volume 3, Issue 2, 2014 63 FOREIGN DIRECT INVESTMENT AND ECONOMIC growth : A THEORETICAL FRAMEWORK Edmore Mahembe*, NM Odhiambo** Abstract The relationship between FDI and ECONOMIC growth has attracted considerable attention over the years. Despite the important role played by FDI in ECONOMIC growth , a number of policy-makers have not fully understood the theoretical linkage between FDI and ECONOMIC growth . The aim of this paper, therefore, is to review the theoretical literature on the relationship between FDI and ECONOMIC growth in a stylized fashion.

economic growth. Through this analysis, the paper ... Empirical studies on economic growth using the exogenous model normally employ the aggregate- ... 3 Following Hicks (1932), a technological innovation is Hicks neutral if the ratio of marginal product of capital to

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