The purpose of this chapter is to describe the development in FDI volatility in developing countries over the long run, that is, the period 1970-2008. In addition, the paper will try to indicate whether, and to what extent, FDI volatility may have an impact on real economy variables. The focus will be on GDP growth, tax revenue and labour market variables. The next section will provide an overview of FDI volatility with descriptive data analysis. The following section will present and discuss some bi-variate regression results with FDI volatility as the independent variable. The chapter will end with a conclusion.

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ISS Staff Group 3: Human Resources and Local Development
International Institute of Social Studies of Erasmus University (ISS)

van Staveren, I. (2011). FDI Volatility and Development. In ISS Staff Group 3: Human Resources and Local Development. Retrieved from