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FDI Spillovers, Efficiency Change and Host Country Labor Productivity: Evidence from GCC Countries

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  • Khaled Elmawazini

Abstract

This study contributes to the empirical literature by investigating the hypothesis that foreign direct investment (FDI) inflows yield positive productivity spillovers to Gulf Cooperation Council (GCC) countries during the period 1995-2011. Using Blundell–Bond dynamic panel Generalized Method of Moments (GMM) estimators, the main finding of dynamic panel data regressions shows that FDI inflows yield weak and negative productivity spillovers to GCC countries through its own or its interaction with host country absorptive capacity. In addition, the empirical results show that efficiency change (movements toward or away from the frontier) and political stability are the main factors that affect labor productivity growth in GCC countries. These results are consistent with previous single-country studies on technology transfer to developing countries. Copyright International Atlantic Economic Society 2014

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  • Khaled Elmawazini, 2014. "FDI Spillovers, Efficiency Change and Host Country Labor Productivity: Evidence from GCC Countries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(4), pages 399-411, December.
    • Handle: RePEc:kap:atlecj:v:42:y:2014:i:4:p:399-411
    DOI: 10.1007/s11293-014-9428-0
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    Cited by:

    1. Kyle A. Johnston & Miguel D. Ramirez, 2015. "Foreign Direct Investment and Economic Growth in Cote D¡¯Ivoire: A Time Series Analysis," Business and Economic Research, Macrothink Institute, vol. 5(2), pages 35-47, December.
    2. Khaled Elmawazini & Pranlal Manga & Sonny Nwankwo & Bader AlNaser, 2019. "Health gap between developed and developing countries: Does globalization matter?," Economic Change and Restructuring, Springer, vol. 52(2), pages 123-138, May.
    3. Khaled Elmawazini & Elias G. Saleeby & Ahmed Ibn el Farouk & Bashayer AL-Naser, 2018. "Tripartite decomposition of labor productivity growth, FDI and human development: evidence from transition economies," Economic Change and Restructuring, Springer, vol. 51(2), pages 153-171, May.
    4. Naijela Janaina Costa Silveira & Diogo Ferraz & Eduardo Polloni‐Silva & Diego Scarpa de Mello & Fernanda Pereira Sartori Falguera & Herick Fernando Moralles, 2022. "Modeling the building blocks of country‐level absorptive capacity: Comparing developed and emergent economies," Bulletin of Economic Research, Wiley Blackwell, vol. 74(3), pages 783-824, July.
    5. Lena, Daniela & Pasurka, Carl A. & Cucculelli, Marco, 2022. "Environmental regulation and green productivity growth: Evidence from Italian manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

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    More about this item

    Keywords

    FDI Spillovers; Efficiency Change; Labor Productivity; GCC Countries; O4; O53; F23;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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