Theoretical and Applied Economics
No. 2 / 2019 (619), Summer
Foreign direct investment and total factor productivity in South Asia
Western Sydney University, Australia
Mamta CHOWDHURY
Western Sydney University, Australia
Girijasankar MALLIK
Western Sydney University, Australia
Abstract. This study attempts to find the effect of foreign direct investment on total factor productivity (TFP) for the four major South Asian economies namely Bangladesh, Pakistan, India and Sri Lanka considering other variables such as human capital, trade openness, government expenditure and CPI as significant determining factors for TFP. The results suggest that FDI is an important determinant of TFP in South Asian region and has a significant positive impact. FDI, trade openness, government expenditure and inflation all affect TFP in the long run for all the countries under study. However, the effect of human capital on TFP in case of Bangladesh’s and Sri Lankan economy is negative. South Asia needs to promote intra-regional trade and economic policies to increase foreign investment. The countries under study are labor intensive economies and labor productivity in the region can be improved through specialized skill development programs.
Keywords: total factor productivity, foreign direct investment, education expenditure, trade openness, South Asia.
Contents
- The education and training.
Priorities of the European Union
Constantin ANGHELACHE
Gabriela Victoria ANGHELACHE
Mădălina Gabriela ANGHEL
- Posted offers in exogenous networks:
A theoretical application and experimental results
Lisa BREGER
Andrea SORENSEN
- The role of Japan in the development
of emerging markets in Asia.
Key lessons learned for China
Ionela VOINEA
- Empirical examination of the stability of expectations –
Augmented Phillips Curve for developing
and developed countries
Yhlas SOVBETOV
Muhittin KAPLAN
- The causality between economic growth and stock market
in developing and developed countries:
Toda-Yamamoto approach
Bilgehan TEKIN
Erol YENER
- Government failure vs. Market failure.
The implications of incomplete information
Rareș Petru MIHALACHE
Dumitru Alexandru BODISLAV
- Foreign direct investment
and total factor productivity in South Asia
Zaira ADNAN
Mamta CHOWDHURY
Girijasankar MALLIK
- Exploring the nexus between macroeconomic variables
and stock market returns in Germany:
An ARDL Co-integration approach
Riadh El ABED
Amna ZARDOUB
- Exchange rate regimes and its impact on growth:
An empirical analysis of BRICS countries
Babu Rao G.
- Dynamics of business cycle
and long-term economic growth of Pakistan
Usama Ehsan KHAN
Syed Monis JAWED
- Per capita gross domestic product
and welfare of Gabonese households:
A VAR model with exogenous hypothesis
Giscard ASSOUMOU-ELLA
- Co-integration with regime shift between government
expenditure and poverty reduction in Algeria
Hicham AYAD
- Trade in a two sector endogenous growth model
with two accumulating factors
Birgit KIRSCHBAUM-BEHL
- What discriminates the welfare outcomes of children in India.
A multiple discriminant analysis in selected states
Atul MEHTA
Joysankar BHATTACHARYA