Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship

Li, Xiaoying; Liu, Xiaohui

doi:10.1016/j.worlddev.2004.11.001

Cited by 857 publications

(658 citation statements)

References 43 publications

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“…In particular, given the keywords of economic growth in China-namely, the transition to economic and sustainable development-the role of advanced talent in R&D becomes even more important. From the perspective of absorption capacity, our results support the notion that, no matter the quality of the FDI and R&D activities undertaken, if human capital has not been formed to accept them, then the two main factors for economic growth are limited [37]. Therefore, given the network analysis results, China should continue to pursue FDI and R&D input policies but must pursue efficiency and efficiency maximization strategies combined with human capital.…”

Section: Discussionsupporting

confidence: 68%

“…In particular, in terms of absorptive capacity, the results of text mining support the finding that an influx of FDI brings more benefits to developed countries where human capital is relatively developed [36,37], and that R&D investment in human capital should precede infrastructure investment [47].…”

Section: Text Mining: Tf-idf and Degree Centralitymentioning

confidence: 60%

“…He argued that education and openness in developed countries led to greater FDI benefits. Similarly, Li and Liu [37] found that FDI had a positive impact on both developed and developing countries and that, in developing countries, human capital and FDI interacted with each other and had a significant positive influence on economic growth.…”

Section: Literature Reviewmentioning

confidence: 91%

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The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

Park

2018

Sustainability

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This study examines the effect of the foreign direct investment (FDI)-human capital and R&D-human capital interactions (FDIHC and RDHHC) on Chinese development between 1991 and 2015. Based on endogenous growth theory, the study focuses on FDI, R&D, and human capital as important factors for sustained economic growth; the interactions among factors are set as the main variables affecting economic growth (GDP). In particular, this study attempts a two-step empirical analysis. First, data mining and semantic network analysis (SNA) are performed using variables as keywords; reliability and realism are reflected as variables. Second, using the vector error correction model (VECM), the study analyzes short and long run mutual influences between variables. The results show that, in data mining and SNA with FDI and R&D as keywords, words related to human capital show high frequency, centrality, and clustering. This finding implies that FDIHC and RDHHC have robustness as variables and can be used as interaction variables. According to the VECM results, FDIHC and RDHHC have positive influences on GDP in the short and long run. The results of a variance decomposition test show that RDHHC has strong mid-to long-run impacts on GDP, FDIHC, and R&D itself.

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Section: Discussionsupporting

confidence: 68%

Section: Text Mining: Tf-idf and Degree Centralitymentioning

confidence: 60%

Section: Literature Reviewmentioning

confidence: 91%

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The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

Park

2018

Sustainability

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“…The authors estimated that a 1 per cent increase in the FDI to GDP ratio is associated with a 0.26 per cent to 0.36 per cent increase in output, depending on model specifications. Li & Liu (2005) supported this conclusion, finding a significant endogenous relationship between FDI and economic growth from the mid-1980s onwards, and suggesting that FDI promotes economic growth by itself and through interaction terms. They estimated that a 1 per cent increase in the FDI to GDP ratio is associated with a 0.42 per cent increase in economic output.…”

Section: Evidence From Cross-country Studiesmentioning

confidence: 68%

After Brexit: Alternate forms of Brexit and their implications for the United Kingdom, the European Union and the United States

Ries¹,

Hafner²,

Smith³

et al. 2017

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For more information on this publication, visit www.rand.org/t/RR2200Published by the RAND Corporation, Santa Monica, Calif., and Cambridge, UK © Copyright 2017 RAND CorporationR® is a registered trademark.RAND Europe is a not-for-profit research organisation that helps to improve policy and decision making through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. Limited Print and Electronic Distribution RightsThis document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions. Support RANDMake a tax-deductible charitable contribution at www.rand.org/giving/contribute www.rand.org www.randeurope.org i In a referendum on 23 June 2016, the British public voted to begin a process of withdrawing from the European Union. Since World War II, no developed country has decided to leave such a major international institution without a military defeat or political revolution. The Brexit negotiations are therefore likely to bring great uncertainty to both the UK and the EU.This study examines the processes and issues involved in the Brexit negotiations, and explores the implications of possible outcomes for the UK, the European Union and the United States. It draws upon formal negotiating positions and mandates adopted, but with the expectation that a wider array of concerns will come into play as the process develops. The study uses game theory insights to explore and create a better understanding of how a wide variety of factors might affect the outcome of the negotiations. The use of modelling and game theory modes of analysis illuminates the broader issues at play, at some remove from the day-to-day drama of the UK's negotiations with the European Union.We also model the potential economic implications of various options for a post-Brexit relationship between the UK and EU. Specifically, the study examines the economic effect of five 'hard Brexit' options: an arrangement in which UK trade is governed by WTO rules, including the application of most-favoured-nation tariffs; the successful negotiation of a UK-EU free trade agreement (FTA); the creation of a UK-EU-US FTA based on the proposed Transatlantic Trade and Investment Partnership; the creation of a US-UK FTA excluding the EU; and an extended transition period during which EU and UK tariffs do not change but other non-tariff barriers to trade come into effect. In addition, we examine three 'soft Brexit' scenarios: the Norwegian model (membership of the European Economic Area), the Swiss model (a series of bilateral agree...

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“…Their result (according to an analysis of the OECD countries) shows that R&D ensures technological catch-up. [15] Studied the relationship between FDI and growth by using simultaneous equations on a panel of 84 countries (21 developed and 63 developing). Their results show that FDI promotes growth through direct effects but also through their interactions with human capital.…”

Section: B Empirical Workmentioning

confidence: 99%

The Role of Foreign Presence in the Technology Transfer

Naanaa¹,

Sellaouti²

2013

IJTEF

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Abstract-Many empirical studies have shown that a large part of the growth productivity is realized through foreign technology, so the objective of this paper is to test the role of foreign presence in the technology transfer through the analysis of its impact on productivity for Tunisian manufactory sector-based over the period 1990-2012. To this end, econometric equations that relate the total factor productivity (TFP), with foreign direct investment (FDI) that reflects technological spillovers will be tested. However, we use the generalized method of moments to determine the TFP.Index Terms-Diffusion of technology, foreign direct investment (FDI), productivity.

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Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship

Cited by 857 publications

References 43 publications

The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

The Nexus of FDI, R&D, and Human Capital on Chinese Sustainable Development: Evidence from a Two-Step Approach

After Brexit: Alternate forms of Brexit and their implications for the United Kingdom, the European Union and the United States

The Role of Foreign Presence in the Technology Transfer

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