FDI and ICT Effects on Productivity Growth: A Comparative Analysis of Developing and Developed Countries

Sophia Dimelis () and Sotiris Papaioannou ()

The European Journal of Development Research, 2010, vol. 22, issue 1, 79-96

Abstract: This article investigates for possible effects stemming from Foreign Direct Investment (FDI) and Information and Communication Technologies (ICT) on productivity growth. The analysis is based on panel data covering a sample of 42 developing and developed countries during the period 1993–2001. The growth accounting results indicate that the growth contribution of ICT was quite high for both developed and developing countries. On the contrary, the FDI contribution was relatively low. The econometric results showed a positive and significant impact of ICT in all groups, the effect being larger among developing countries. Positive and significant FDI effects were found in the group of developed countries, and positive but insignificant, among the developing ones.Cet article examine les effets découlant des investissements directs étrangers (IDE) et des technologies de l’information et de la communication (TIC) sur la croissance de la productivité. L’analyse repose sur des données de panel concernant 42 pays développés et en développement sur la période 1993–2001. Les résultats obtenus par la méthode de la comptabilité de la croissance indiquent que la contribution des TIC à la croissance était assez forte tant pour les pays développés que les pays en développement. A l’inverse, la contribution des IDE à la croissance était relativement faible. Les résultats économétriques ont montré un impact des TIC significatif et positif sur toutes les catégories, avec un effet plus marqué en ce qui concerne les pays en développement. L’impact des IDE était significatif et positif pour le groupe des pays développés et positif mais non significatif pour les pays en développement.

Date: 2010
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