Threshold Effect of Intelligence in the FDI-Growth Nexus
This paper examines whether there is a threshold effect of intelligence in the relationship between FDI and economic growth. It proposes that only countries with a sufficiently high level of intelligence can gain from FDI inflows. To test this, the study uses data from 85 countries covering the peri...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | en |
| Published: |
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2025
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/45782/1/FULLTEXT.pdf https://eprints.ums.edu.my/id/eprint/45782/ https://doi.org/10.5281/zenodo.17165548 |
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| Summary: | This paper examines whether there is a threshold effect of intelligence in the relationship between FDI and economic growth. It proposes that only countries with a sufficiently high level of intelligence can gain from FDI inflows. To test this, the study uses data from 85 countries covering the period 1976–2018. A threshold regression model is applied to capture the non-linear impact of FDI on growth. The results show that FDI contributes positively to growth only after a country reaches a certain level of intelligence. Below this threshold, FDI has no significant effect on growth. |
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