Product ISBN : 978-1-78902-023-6
Publishing house: Glimmer Publishing
Number of pages: 100
Author: Someshwar Rao, Qi Zhing
Year of publication: 2018
This study, using a detailed panel data on Canada's goods and service industries and system approach, estimates the macro-economic impacts of inward and outward FDI in Canada. The estimated coefficients of the 11 behavioral equations and six identities are used to simulate the macro-economic impacts of a sustained 10% increase in Canada's two FDI stocks. The simulated impacts show a significant positive impact of the two FDI stocks on trade flows, investment, innovation, real GDP and employment. However, the inward FDI impacts are significantly bigger than the outward FDI impacts. A 10% increase in the two FDI stocks would raise Canada's real GDP by 1.2% in the medium to longer-term.