Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus

Bodman, Philip and Le, Thanh (2013) Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus. Applied Economics, 45 8: 1027-1039.


Author Bodman, Philip
Le, Thanh
Title Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus
Journal name Applied Economics   Check publisher's open access policy
ISSN 0003-6846
1466-4283
Publication date 2013
Year available 2011
Sub-type Article (original research)
DOI 10.1080/00036846.2011.613789
Volume 45
Issue 8
Start page 1027
End page 1039
Total pages 13
Place of publication Milton Park, Abingdon, Oxon, U.K.
Publisher Routledge
Collection year 2014
Language eng
Formatted abstract We further examine the channels through which Foreign Direct Investment (FDI) develops the national productivity of host countries. We investigate whether FDI is an effective channel of technological transfer across borders and whether that technology transfer is bi-directional: from an investing country to a host country and vice versa. In particular, an analysis is provided of whether FDI helps channel more resources towards the promotion of education activities and hence augments economic growth indirectly through augmenting the host country's absorptive capacity. Also, the analysis uses a novel approach to take into account the possibility that physical distances can act as a barrier to economic and technological interactions amongst countries, by embedding a measure of geographical distance into two specific channels: international trade and FDI. Empirical results obtained all lend strong support to these hypotheses.
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online: 04 Nov 2011

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2014 Collection
School of Economics Publications
 
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Created: Thu, 13 Oct 2011, 10:31:50 EST by Dr Thanh Quang Le on behalf of School of Economics