Assessing the relationship between total factor productivity and foreign direct investment in an economy with a skills shortage: the case of South Africa

Lumengo Bonga-Bonga and Maphelane Phume

MPRA Paper from University Library of Munich, Germany

Abstract: This paper assesses the relationship between total factor productivity (TFP) and foreign direct investment (FDI) in a country with skills shortage. South Africa is used as a case study. Literature is inconclusive on how FDI should affect TFP. This paper shows that it is important to account for the interactivity between FDI and human capital when assessing the effects of FDI on TFP. Moreover, the empirical results show that, contrary to countries with abundance of skills, in countries with skills shortage, it is in fact the change in stock of human capital - or human capital accumulation – that matters in determining the effects of FDI on TFP.

Keywords: Total factor productivity; foreign direct investment; human capital; skills shortage (search for similar items in EconPapers)
JEL-codes: C10 O3 O4 (search for similar items in EconPapers)
Date: 2017-12-13
New Economics Papers: this item is included in nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/83288/1/MPRA_paper_83288.pdf original version (application/pdf)

Related works:
Journal Article: Assessing the relationship between total factor productivity and foreign direct investment in an economy with a skills shortage: the case of South Africa (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83288

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().