How Does Inflow of FDI Affect Economic Growth in East Asia?
Publish place: International Economics Studies، Vol: 40، Issue: 1
Publish Year: 1391
نوع سند: مقاله ژورنالی
زبان: English
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شناسه ملی سند علمی:
JR_IESUI-40-1_002
تاریخ نمایه سازی: 31 فروردین 1400
Abstract:
In this paper, we address the question that does FDI alone affect economic growth or interaction of FDI and human capital is required to boost economic growth. We develop the model with an expanding variety of products. We estimate the model using some advanced tests utilizing data on FDI flows from developed countries. We find stronger complementary effects between FDI and human capital on the productivity growth rate instead of having them as separate variables. This result is consistent with the idea that the flow of advanced technology brought along by FDI can increase the growth rate of the host economy only by interacting with that country's absorptive capability. JEL Classification: F21: O49
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Authors
Rafat Beigpoor Shahrivar
Tehran
Idris Bin Jajri
University of Malaya, Malaysia