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FDI and ICT Effects on Productivity Growth: A Comparative Analysis of Developing and Developed Countries

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  • Sophia P Dimelis

    (Athens University of Economics and Business, Athens)

  • Sotiris K Papaioannou

    (Centre for Planning and Economic Research, Athens)

Abstract

This article investigates for possible effects stemming from Foreign Direct Investment (FDI) and Information and Communication Technologies (ICT) on productivity growth. The analysis is based on panel data covering a sample of 42 developing and developed countries during the period 1993–2001. The growth accounting results indicate that the growth contribution of ICT was quite high for both developed and developing countries. On the contrary, the FDI contribution was relatively low. The econometric results showed a positive and significant impact of ICT in all groups, the effect being larger among developing countries. Positive and significant FDI effects were found in the group of developed countries, and positive but insignificant, among the developing ones.Cet article examine les effets découlant des investissements directs étrangers (IDE) et des technologies de l’information et de la communication (TIC) sur la croissance de la productivité. L’analyse repose sur des données de panel concernant 42 pays développés et en développement sur la période 1993–2001. Les résultats obtenus par la méthode de la comptabilité de la croissance indiquent que la contribution des TIC à la croissance était assez forte tant pour les pays développés que les pays en développement. A l’inverse, la contribution des IDE à la croissance était relativement faible. Les résultats économétriques ont montré un impact des TIC significatif et positif sur toutes les catégories, avec un effet plus marqué en ce qui concerne les pays en développement. L’impact des IDE était significatif et positif pour le groupe des pays développés et positif mais non significatif pour les pays en développement.

Suggested Citation

  • Sophia P Dimelis & Sotiris K Papaioannou, 2010. "FDI and ICT Effects on Productivity Growth: A Comparative Analysis of Developing and Developed Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(1), pages 79-96, February.
  • Handle: RePEc:pal:eurjdr:v:22:y:2010:i:1:p:79-96
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    Cited by:

    1. Massa, Isabella, 2015. "Technological change in developing countries: Trade-offs between economic, social, and environmental sustainability," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Omar Neme Castillo & Ana Lilia Valderrama Santibáñez & Humberto Ríos Bolívar, 2013. "Comercio internacional, IED, capital humano e ingreso per cápita en América Latina y el Caribe," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 101-139, May.
    3. Aneta Kosztowniak, 2014. "Analysis Of The Cobb-Douglas Production Function As A Tool To Investigate The Impact Of Fdi Net Inflows On Gross Domestic Product Value In Poland In The Period 1994–2012," Oeconomia Copernicana, Institute of Economic Research, vol. 5(4), pages 169-190, December.
    4. Clark Don P. & Highfill Jannett & de Oliveira Campino Jonas & Rehman Scheherazade S., 2011. "FDI, Technology Spillovers, Growth, and Income Inequality: A Selective Survey," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-44, July.
    5. Bashir, Sadaf & Sadowski, B. M., 2014. "General purpose technologies: A survey, a critique and future research directions," 25th European Regional ITS Conference, Brussels 2014 101443, International Telecommunications Society (ITS).
    6. Niebel, Thomas, 2014. "ICT and economic growth: Comparing developing, emerging and developed countries," ZEW Discussion Papers 14-117, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Iris Mihai, 2014. "Reconsidering Economic Productivity," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 176-180, December.
    8. Nicholas Apergis & Arusha Cooray, 2016. "Old Wine In A New Bottle: Trade Openness And Fdi Flows—Are The Emerging Economies Converging?," Contemporary Economic Policy, Western Economic Association International, vol. 34(2), pages 336-351, April.
    9. Ljiljana Lovric, 2012. "Information-communication technology impact on labor productivity growth of EU developing countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 30(2), pages 223-245.

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