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The Impacts of FDI on Productivity and Economic Growth: A Comparative Perspective

Tintin, Cem LU (2010) NEKM02 20101
Department of Economics
Abstract
This study investigates the impacts of FDI on productivity and economic growth in comparative perspective by using two samples, namely “developing” and “developed” countries. The study employs panel cointegration and panel estimation methods. The panel cointegration test results indicate that there are long-run relations between “FDI and productivity”, and “FDI and economic growth” variables. The study’s main findings show that FDI triggers (labor) productivity and economic growth in a positive way but at different degrees. Nonetheless, the magnitudes of these effects differ across developing and developed countries. Moreover, the findings testify that the impacts of FDI on productivity and economic growth can be improved with high labor... (More)
This study investigates the impacts of FDI on productivity and economic growth in comparative perspective by using two samples, namely “developing” and “developed” countries. The study employs panel cointegration and panel estimation methods. The panel cointegration test results indicate that there are long-run relations between “FDI and productivity”, and “FDI and economic growth” variables. The study’s main findings show that FDI triggers (labor) productivity and economic growth in a positive way but at different degrees. Nonetheless, the magnitudes of these effects differ across developing and developed countries. Moreover, the findings testify that the impacts of FDI on productivity and economic growth can be improved with high labor quality. Finally, it is analyzed that higher openness and macroeconomic stability might be other important factors in assessing the positive impacts of FDI concerning economic growth. (Less)
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author
Tintin, Cem LU
supervisor
organization
course
NEKM02 20101
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Foreign Direct Investment, Productivity, Economic Growth, Panel Cointegration, Panel Estimation.
language
English
id
1612761
date added to LUP
2010-06-18 08:25:57
date last changed
2010-06-18 08:25:57
@misc{1612761,
  abstract     = {This study investigates the impacts of FDI on productivity and economic growth in comparative perspective by using two samples, namely “developing” and “developed” countries. The study employs panel cointegration and panel estimation methods. The panel cointegration test results indicate that there are long-run relations between “FDI and productivity”, and “FDI and economic growth” variables. The study’s main findings show that FDI triggers (labor) productivity and economic growth in a positive way but at different degrees. Nonetheless, the magnitudes of these effects differ across developing and developed countries. Moreover, the findings testify that the impacts of FDI on productivity and economic growth can be improved with high labor quality. Finally, it is analyzed that higher openness and macroeconomic stability might be other important factors in assessing the positive impacts of FDI concerning economic growth.},
  author       = {Tintin, Cem},
  keyword      = {Foreign Direct Investment,Productivity,Economic Growth,Panel Cointegration,Panel Estimation.},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Impacts of FDI on Productivity and Economic Growth: A Comparative Perspective},
  year         = {2010},
}