{"paper":{"title":"FDI versus R\\&D in an endogenous growth model","license":"http://arxiv.org/licenses/nonexclusive-distrib/1.0/","headline":"If a host country invests in R&D its economy reaches sustained growth while FDI benefits only early stages.","cross_cats":[],"primary_cat":"q-fin.GN","authors_text":"Ngoc-Sang Pham (EM Normandie), Thanh Tam Nguyen-Huu","submitted_at":"2025-01-21T10:02:53Z","abstract_excerpt":"We investigate the role of foreign direct investment (FDI) and research and development (R\\&D) in the transitional dynamics of host countries using an optimal growth model. FDI may benefit the host country's GNP by enabling multinational enterprises to hire local workers. However, if the host country focuses solely on FDI, it may fall into a middle-income trap. Most importantly, we show that if the host country invests in R\\&D, its economy can reach sustained growth. In this case, FDI benefits the host country, but only in the early stages of its development process."},"claims":{"count":4,"items":[{"kind":"strongest_claim","text":"if the host country invests in R&D, its economy can reach sustained growth. In this case, FDI benefits the host country, but only in the early stages of its development process.","source":"verdict.strongest_claim","status":"machine_extracted","claim_id":"C1","attestation":"unclaimed"},{"kind":"weakest_assumption","text":"The model assumes specific functional forms and parameter values that allow R&D to generate sustained endogenous growth, which may not hold if the production functions or innovation processes are different.","source":"verdict.weakest_assumption","status":"machine_extracted","claim_id":"C2","attestation":"unclaimed"},{"kind":"one_line_summary","text":"An endogenous growth model finds that R&D investment allows host countries to achieve sustained growth from FDI, avoiding the middle-income trap that occurs with FDI alone.","source":"verdict.one_line_summary","status":"machine_extracted","claim_id":"C3","attestation":"unclaimed"},{"kind":"headline","text":"If a host country invests in R&D its economy reaches sustained growth while FDI benefits only early stages.","source":"verdict.pith_extraction.headline","status":"machine_extracted","claim_id":"C4","attestation":"unclaimed"}],"snapshot_sha256":"a54ae451a31e0619034a6cc4a71fa77364b4fc35e9347bca1479df56f13b30d0"},"source":{"id":"2501.12010","kind":"arxiv","version":3},"verdict":{"id":"5514c6bb-804f-4e46-90c2-b5a61857315a","model_set":{"reader":"grok-4.3"},"created_at":"2026-05-23T05:36:16.492113Z","strongest_claim":"if the host country invests in R&D, its economy can reach sustained growth. In this case, FDI benefits the host country, but only in the early stages of its development process.","one_line_summary":"An endogenous growth model finds that R&D investment allows host countries to achieve sustained growth from FDI, avoiding the middle-income trap that occurs with FDI alone.","pipeline_version":"pith-pipeline@v0.9.0","weakest_assumption":"The model assumes specific functional forms and parameter values that allow R&D to generate sustained endogenous growth, which may not hold if the production functions or innovation processes are different.","pith_extraction_headline":"If a host country invests in R&D its economy reaches sustained growth while FDI benefits only early stages."},"integrity":{"clean":true,"summary":{"advisory":0,"critical":0,"by_detector":{},"informational":0},"endpoint":"/pith/2501.12010/integrity.json","findings":[],"available":true,"detectors_run":[],"snapshot_sha256":"c28c3603d3b5d939e8dc4c7e95fa8dfce3d595e45f758748cecf8e644a296938"},"references":{"count":0,"sample":[],"resolved_work":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57","internal_anchors":0},"formal_canon":{"evidence_count":3,"snapshot_sha256":"58925e75dcda1ef5987284599474336e6ba9f62e5f5e0269bfc9059a4748cbce"},"author_claims":{"count":0,"strong_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"builder_version":"pith-number-builder-2026-05-17-v1"}