FOREIGN DIRECT INVESTMENT, PRODUCTIVITY SPILLOVERS AND LABOR QUALITY

Yıl 2012, Cilt: 4 Sayı: 1, 57 - 66, 01.06.2012

Cem Tintin

Öz

This study investigates whether there are productivity spillovers stemming from
Foreign Direct Investment (FDI) in developed and developing countries over the
period 1984-2008. The study uses two productivity measures: labor and total
factor productivity. 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 variables. The study’s main findings
reveal that FDI triggers labor productivity in a significant way. However, in use of
the total factor productivity variable, the effect of FDI on productivity is found too
limited. Moreover, the magnitudes of the FDI effect on productivity differ
remarkably across developed and developing countries. The findings also testify
that the effects of FDI on productivity are higher in countries with high quality of
labor force, which is measured by the labor quality index of Bonthuis (2010).

Anahtar Kelimeler

Foreign Direct Investment, Productivity Spillovers, Labor Quality, Panel Data

Kaynakça

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