Productivity growth and technological diffusion through foreign direct investment.: An article from: Economic Inquiry

This digital document is an article from Economic Inquiry, published by Western Economic Association International on April 1, 2009. The length of the article is 13680 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

From the author: Foreign direct investment (FDI) has dramatically, increased worldwide and is the most important form of all private capital flows to developing countries. Yet, it is an important empirical question whether FDI affects total factor productivity (TFP) positively. We investigate the effect of FDI on TFP growth in a large sample of countries in 1970-2000. Our econometric results indicate that FDI has a positive and direct effect on TFP growth. However, we do not find any evidence that the impact of FDI on TFP growth is only conditional on the recipient country's capability to absorb foreign technology. We carefully address the robustness of the empirical results. (JEL O11, O40, O47, F21)

Citation Details
Title: Productivity growth and technological diffusion through foreign direct investment.
Author: Jaejoon Woo
Publication:Economic Inquiry (Magazine/Journal)
Date: April 1, 2009
Publisher: Western Economic Association International
Volume: 47 Issue: 2 Page: 226(23)

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