Foreign direct investment and total factor productivity in South Asia
Mamta Chowdhury and
Additional contact information
Zaira Adnan: Western Sydney University, Australia
Mamta Chowdhury: Western Sydney University, Australia
Girijasankar Mallik: Western Sydney University, Australia
Theoretical and Applied Economics, 2019, vol. XXVI, issue 2(619), Summer, 105-120
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. (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxvi:y:2019:i:2(619):p:105-120
Access Statistics for this article
Theoretical and Applied Economics is currently edited by Marin Dinu
More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Bibliographic data for series maintained by Marin Dinu ().