Foreign direct investment, technology transfer and economic growth : times series evidence from Australia 1975-1997

McCormack, Daniel Giles. (2000). Foreign direct investment, technology transfer and economic growth : times series evidence from Australia 1975-1997 Honours Thesis, School of Economics, The University of Queensland.

       
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Author McCormack, Daniel Giles.
Thesis Title Foreign direct investment, technology transfer and economic growth : times series evidence from Australia 1975-1997
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2000
Thesis type Honours Thesis
Total pages 80
Language eng
Subjects 14 Economics
Formatted abstract
The aim of this thesis is to examine the nature of the relationship between foreign direct investment and economic growth. It is argued that foreign direct investment positively affects economic growth through both the accumulation of capital and the transfer of technology. An analysis is made of the channels through which technology transfer takes place and the relative importance of these channels is assessed; based largely on case study evidence. A review of the capital trade theory together with the case study evidence and the empirical studies on the existence of spillovers suggests that there is a strong prima facie case for FDI to impact positively on Australian economic growth. To test this hypothesis a vector error correction model is constructed using time series data from Australia for the period 1975 to 1997 inclusive. Appropriate tests for stationarity and cointegration are performed and a WALD test is used to test whether FDI granger causes economic growth during this period in both a two and a three variable vector error correction model. In contrast to a recent Chinese study no evidence of causality in either direction is found. Further, an analysis of the policy implications of FDI is conducted to examine firstly whether government has a role with respect to FDI, and secondly, if so, what that role is.

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
 
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Created: Tue, 30 Nov 2010, 10:09:54 EST by Muhammad Noman Ali on behalf of The University of Queensland Library