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Foreign direct investment and total factor productivity in OECD countries: evidence from aggregate data

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  • Argentino Pessoa

    ()
    (Faculdade de Economia, Universidade do Porto)

Abstract

Foreign direct investment (FDI) can be a source not just of capital, but also of new technology and intangibles such as organizational and managerial skills, and marketing networks. In this study, a panel data approach is used to study the effects of FDI on aggregate Total Factor Productivity in a sample of 16 OECD countries. We have implemented a statistical descriptive model that allows us to show that FDI has a positive impact on TFP, possibly because FDI is a channel through which technologies are transferred internationally.

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File URL: http://www.fep.up.pt/investigacao/workingpapers/05.09.02_WP188_argentino.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 188.

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Length: 19 pages
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:por:fepwps:188

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Keywords: Foreign direct investment; total factor productivity; royalties and license fees; spillovers;

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