Foreign direct investment and productivity : financial openness thresholds Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/dn39x372s

Descriptions

Attribute NameValues
Creator
Abstract or Summary
  • The last two decades have witnessed a triumph of free market policies in many developing countries and thus an increase in trade and financial openness. While economic theory provides a solid justification of the fact that trade and financial openness for a small economy with perfectly competitive markets improve resource allocation and thus national welfare, empirical evidence shows that financial openness does not necessarily boost the economic growth. Intuition suggests that there should be certain preconditions or thresholds for developing countries to benefit from financial openness. By applying Data Envelopment Analysis, robust OLS regressions and threshold analysis, we examine whether the effect of Foreign Direct Investment (FDI) on country's productivity is dependent upon different levels of financial openness. Our paper uses three measures of financial openness, namely, the value of total shares traded divided by market capitalization, the ratio of liquid liabilities to GDP and market capitalization. The empirical analysis shows that FDI has a positive effect on host country productivity based on a sample of 45 countries covering the period from 1980 through 2006. We also found that relationship between FDI and productivity is not monotonic and there exist threshold levels of financial openness at which productivity gain from FDI can be maximized.
Resource Type
Date Available
Date Copyright
Date Issued
Degree Level
Degree Name
Degree Field
Degree Grantor
Commencement Year
Advisor
Committee Member
Academic Affiliation
Non-Academic Affiliation
Keyword
Subject
Rights Statement
Language
Replaces
Additional Information
  • description.provenance : Made available in DSpace on 2009-06-26T22:20:47Z (GMT). No. of bitstreams: 1 THESIS-working_copy.pdf: 665011 bytes, checksum: 6b358f141ea25f31b4d0b7b5bad81d0a (MD5)
  • description.provenance : Submitted by Maria Kabalyk (kabalykm@onid.orst.edu) on 2009-06-20T00:20:02Z No. of bitstreams: 1 THESIS-working_copy.pdf: 665011 bytes, checksum: 6b358f141ea25f31b4d0b7b5bad81d0a (MD5)
  • description.provenance : Approved for entry into archive by Julie Kurtz(julie.kurtz@oregonstate.edu) on 2009-06-26T18:00:11Z (GMT) No. of bitstreams: 1 THESIS-working_copy.pdf: 665011 bytes, checksum: 6b358f141ea25f31b4d0b7b5bad81d0a (MD5)
  • description.provenance : Approved for entry into archive by Laura Wilson(laura.wilson@oregonstate.edu) on 2009-06-26T22:20:47Z (GMT) No. of bitstreams: 1 THESIS-working_copy.pdf: 665011 bytes, checksum: 6b358f141ea25f31b4d0b7b5bad81d0a (MD5)

Relationships

In Administrative Set:
Last modified: 08/01/2017

Downloadable Content

Download PDF
Citations:

EndNote | Zotero | Mendeley

Items