Foreign direct investment and productivity: evidence from the East Asian economies
نویسنده
چکیده
In this paper, an examination is made of the linkage between foreign direct investment and productivity in eight East Asian economies–China, Hong Kong SAR, Indonesia, Malaysia, Republic of Korea, Singapore, Taiwan Province of China and Thailand. The Granger causality test and the Toda-Yamamoto version of the Granger causality test are used to test if inflows of foreign direct investment “cause” productivity growth. The results show that only two countries reveal evidence of a one-way causality between inflows of foreign direct investment and total factor productivity growth. Similarly, there is also little evidence that inflows of foreign direct investment cause technical change or efficiency change in the sample economies.
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