Template-type: ReDIF-Paper 1.0
Author-Name:Henry Thompson
Author-Email:thomph1@auburn.edu
Author-Workplace-Name:Department of Economics, Auburn University.
Title: Economic Growth with Imperfect Foreign Investment 
Abstract: Foreign investment has proven essential for economic growth and the present paper connects it explicitly to
 the capital stock in the neoclassical growth model. The assumption in the literature of perfect foreign investment implies
 no distinction between domestic and foreign capital. In the applied growth literature, the working assumption is that
 foreign investment shifts technology. The present paper introduces imperfect foreign investment as a function of
 the difference between domestic and foreign capital returns. The foreign capital stock is then separate and the small
 open economy may be a steady state foreign investment host (or source). Convergence is incomplete in the two country model.
Keywords: Economic Growth,Foreign Investment, Foreign capital
Length: 17 pages
Creation-Date: 2004-09-01
File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0409.pdf
File-Format:Application/PDF
Handle: RePEc:ays:ispwps:paper0409