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Foreign Direct Investment Intensity Effects On Tfp Intensity Of Asean 5 Plus 2

Author

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  • Elsadig Musa Ahmed

    (Economics Unit, Faculty of Business and Law, Multimedia University)

Abstract

This study aims to investigate the role of foreign direct investment (FDI) intensity through decomposition of labour productivity growth into contributions of capital deepening, increased usage of foreign direct investment (FDI) intensity, and the simultaneous contribution of the quality of these factors. This has expressed as the contribution of total factor productivity (TFP) intensity growth in achieving productivity driven growth in ASEAN 5 (Malaysia, Indonesia, Philippines, Singapore and Thailand) plus 2 (China and South Korea). This study claims to fill in the gaps of previous studies by developing applications of intensive growth theory and introducing the TFP intensity (TFP per unit of labour). The results show that the productivity growth of ASEAN 5 plus China and South Korea is input driven, however, South Korean Model has constructed companies such as Daewoo, Samsung and LG that competed globally. The study also finds that the impact of FDI intensity is positive with slight contribution to TFP intensity growth.

Suggested Citation

  • Elsadig Musa Ahmed, 2008. "Foreign Direct Investment Intensity Effects On Tfp Intensity Of Asean 5 Plus 2," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 33(2), pages 155-166, December.
    • Handle: RePEc:jed:journl:v:33:y:2008:i:2:p:155-166
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    References listed on IDEAS

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    Cited by:

    1. Svitlana Maksymenko & Mahbub Rabbani, 2011. "Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 39-59, June.
    2. Rahim KIA LASHAKI & Elsadig Musa AHMED, 2017. "FDI Inflow Spillover Effect Implications On The Asia Pacific Productivity Growth Through The Export Channel," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(3), pages 57-72.
    3. Ahmed, Elsadig Musa, 2012. "Are the FDI inflow spillover effects on Malaysia's economic growth input driven?," Economic Modelling, Elsevier, vol. 29(4), pages 1498-1504.
    4. Elsadig Musa Ahmed & Rahim Kialashaki, 2023. "FDI inflows spillover effect implications on the Asian‐Pacific labour productivity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 575-588, January.

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    More about this item

    Keywords

    ASEAN 5 Plus 2; FDI Intensity; TFP Intensity; Input-Driven;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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