Share EconPapers Home About EconPapers Working Papers Journal Articles Books and Chapters Software Components Authors JEL codes New Economics Papers Advanced Search Quick Search EconPapers FAQ Cookies at EconPapers Archive maintainers FAQ Format for printing The RePEc blog Foreign Direct I nvestment and Economic Growth: Empirical Evidence from Sectoral Data in I ndonesia Abdul Khaliq and Ilan Noy ( noy@hawaii.edunoy@hawaii.edu ) Additional contact information No 200726, Working Papers from University of Hawaii at Manoa, Department of Economics Abstract: The paper investigates the impact of foreign direct investment (FDI) on economic growth using detailed sectoral data for FDI inflows to Indonesia over the period 1997-2006. In the aggregate level, FDI is observed to have a positive effect on economic growth. However, when accounting for the different average growth performance across sectors, the beneficial impact of FDI is no longer apparent. When examining different impacts across sectors, estimation results show that the composition of FDI matters for its effect on economic growth with very few sectors showing positive impact of FDI and one sector even showing a robust negative impact of FDI inflows (mining and quarrying). The sectors examined are: farm food crops, livestock product, forestry, fishery, mining and quarrying, non-oil and gas industry, electricity, gas and water, construction, retail and wholesale trade, hotels and restaurant, transport and communications, and other private and services sectors. Keywords: Foreign direct investment ; economic growth ; Indonesia (search for similar items in EconPapers) JEL-codes: F21 F23 (search for similar items in EconPapers) New Economics Papers: this item is included in nep-dev , nep-fdg and nep-sea Date: 2007-10-01 View list of references View citations in EconPapers Track citations by RSS feed Downloads: (external link) http://www.economics.hawaii.edu/research/workingpapers/WP_07- 26.pdf First version, 2007 (application/pdf) Related works: This item may be available elsewhere in EconPapers: Search for items with the same title. Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/ Text Persistent link: http://EconPapers.repec.org/RePEc:hai:wpaper:200726 Ordering information: This working paper can be ordered from http://www.economics ... s/workingpapers.html econ@hawaii.eduecon@hawaii.edu Access Statistics for this paper More papers in Working Papers from University of Hawaii at Manoa, Department of Economics Contact information at EDI RC. Series data maintained by Web Technician ( econweb@hawaii.edueconweb@hawaii.edu ). This site is part of RePEc and all the data displayed here is part of the RePEc data set. Is your work missing from RePEc? Here is how to contribute. Questions or problems? Check the EconPapers FAQ or send mail to econpapers@oru.seeconpapers@oru.se. EconPapers is hosted by the Swedish Business School at Örebro University. Page updated 2010-12-15 Handle: RePEc:hai:wpaper:200726