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Openness and Productivity: The Role of Imports, FDI and International Telecommunications

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  • Yanling Wang

Abstract

Previous research has shown that trade and FDI are beneficial to countries’ economic development. This paper builds on the literature, and analyzes the effects on total factor productivity (TFP) through three channels of openness—imports, inward FDI and international call traffic (ICT) for a set of developing countries in Asia and Latin America and the Caribbean (LAC). Using data from the period of 1980 to 2000, I find that imports, FDI and international call traffic all significantly promote TFP growth in developing countries, and that human capital enhances the effects of imports on TFP.

Suggested Citation

  • Yanling Wang, 2012. "Openness and Productivity: The Role of Imports, FDI and International Telecommunications," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 125-145, May.
    • Handle: RePEc:ioe:cuadec:v:49:y:2012:i:1:p:125-145
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    Cited by:

    1. Yapatake Kossele Thales Pacific, 2015. "Foreign Direct Investment in Anglophone and Francophone African Countries," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(11), pages 337-350, November.
    2. Yapatake Kossele Thales Pacific, 2017. "Slow Growth of Foreign Direct Investment in Central African Republic," Global Business Review, International Management Institute, vol. 18(6), pages 1435-1446, December.
    3. Kevin Williams, 2015. "Foreign direct investment in Latin America and the Caribbean: an empirical analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 52(1), pages 57-77, May.
    4. Pacific K. T. Yapatake, 2017. "The Slow growth of Foreign Direct Investment in Central African Republic," CEREDEC Working Papers 17/001, Centre de Recherche pour le Développement Economique (CEREDEC).
    5. Sanjoy Kumar Saha, 2022. "How Does the Impact of Foreign Direct Investment on Labor Productivity Affects Productive Capacity?," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(4), pages 101-135.

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    More about this item

    Keywords

    TFP; imports; FDI; international call traffic;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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