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Summary on FDI and Economic Growth based on the Perspective of Financial Development

LIU Xing-kai(Institute of International Economics,Nankai University,Tianjin 300071,China)  
Many scholars and policy makers believe that foreign direct investment(FDI) in favor of the host country to promote economic growth,but the empirical findings show that,the effects of FDI for economic growth in many developing countries are not clear,mainly because the effects of FDI are constrained by the conditions of host country(that is,the absorp-tive capacity).The host country's financial development have an impact on the relationship between FDI and economic growth mainly through the effect of human capital,technological innovation,industry link and the mechanism of market optimization.The financial development has become a very important factor for the FDI effects,and also an important new direction for the future of the FDI study.
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