Advanced technology plays a more and more important role in economic growth. With increasing international transactions, technology spillover between countries is becoming more important for especially developing countries. The main objective of this essay is to investigate the relationship between labor productivity and technological spillovers measured by Foreign Direct Investments (FDI), import and Research and Development expenditure (R&D). We use data covering 41 developing countries for the time period 2005 to 2008 to assess the extent to which technological spillovers from US influence labor productivity in the selected developing countries. Our results show that the relationship between technological spillovers and labor productivity in developing countries are highly sensitive to model specification and estimation techniques. Simple pooled data estimations revels a clear relation between technological spillover an labor productivity while more complex models such as  dynamic panel data models fails in this task.

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This dissertation investigates the determinants of China's exports and regional economic growth, the direction of causality between foreign direct investment (FDI) and exports; and convergence analysis among Chinese provinces. The study firstly discusses the evolutional process of China's foreign trade regime through comparing the strategies and policies before 1978 with those after 1978. It is emphasised that the export-promotion development policies result in the recent basic export patterns and characteristics. Furthermore, the study reviews the existing literature on exports, FDI, and convergence/growth determinants in the case of China. The empirical work comprises three parts. Firstly, fixed-effects ordinary least squares (OLS) and random-effects generalised least squares (GLS) panel data estimators are applied to test the determinants of provincial exports from 1994 to 2003. It is found that FDI, geographical location, investment in manufacturing innovation, and human capital have significant influences on regional export performance. Secondly, the augmented Dickey-Fuller (ADF) tests are carried out to test stationarity and the Granger causality tests are conducted to test the causal direction between FDI and exports, based on monthly national data from January, 2002 to June, 2006. The empirical results indicate that there is a one-way complementary causal link from FDI inflows to China's export flows. Thirdly, three methods, beta convergence, sigma convergence, and Markov Chain analysis, are used to do convergence debate among China's regions and the standard OLS cross-section and random-effects GLS panel data are applied to test the conditional convergence. The results suggest that the convergence hypothesis does not hold in China between 1994 and 2003 and there is a sign of conditional convergence, conditioning the explanatory variables such as exports, human capital, and population growth. / Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2007.

This dissertation investigates the determinants of China's exports and regional economic growth, the direction of causality between foreign direct investment (FDI) and exports; and convergence analysis among Chinese provinces. The study firstly discusses the evolutional process of China's foreign trade regime through comparing the strategies and policies before 1978 with those after 1978. It is emphasised that the export-promotion development policies result in the recent basic export patterns and characteristics. Furthermore, the study reviews the existing literature on exports, FDI, and convergence/growth determinants in the case of China. The empirical work comprises three parts. Firstly, fixed-effects ordinary least squares (OLS) and random-effects generalised least squares (GLS) panel data estimators are applied to test the determinants of provincial exports from 1994 to 2003. It is found that FDI, geographical location, investment in manufacturing innovation, and human capital have significant influences on regional export performance. Secondly, the augmented Dickey-Fuller (ADF) tests are carried out to test stationarity and the Granger causality tests are conducted to test the causal direction between FDI and exports, based on monthly national data from January, 2002 to June, 2006. The empirical results indicate that there is a one-way complementary causal link from FDI inflows to China's export flows. Thirdly, three methods, beta convergence, sigma convergence, and Markov Chain analysis, are used to do convergence debate among China's regions and the standard OLS cross-section and random-effects GLS panel data are applied to test the conditional convergence. The results suggest that the convergence hypothesis does not hold in China between 1994 and 2003 and there is a sign of conditional convergence, conditioning the explanatory variables such as exports, human capital, and population growth. / Thesis (Ph.D. (Economics))--North-West University, Potchefstroom Campus, 2007.

Increased globalisation over the last two decades has led to strong growth of international business activity and FDI. Despite the considerable amount of research that has been undertaken to analyse the determinants and consequences of FDI, Australia represents a country with a substantial share of foreign ownership whose FDI experience has been largely overlooked in terms of a comprehensive economic analysis. Not only has Australia received a large amount of foreign investment so far, it is also competing for more FDI. Invest Australia, Australia’s national inward investment agency, is actively promoting Australia as a location for FDI, claiming that foreign investment has made a major contribution to Australia’s economic growth and living standards of all Australians. Instantly, two key issues arise. Firstly, assuming that FDI has positive effects, what causes the inflow of FDI, i.e. what are the determinants of FDI in Australia? Secondly, given the inflow of FDI, what is its actual effect on the Australian economy, i.e. what are the consequences of FDI in Australia? / In order to analyse those questions, new and previously unused data on FDI inflows in Australia were explored by applying time-series and panel-data analysis. The time period ranges from 1981 to 2002, with differing coverage for the individual samples. A further contribution of the thesis is the search for new FDI data, bringing together and analysing datasets provided by the ABS and other statistical agencies (from the US, the UK, Japan and Germany). A detailed description of Australian FDI data was given to gain a better understanding of the Australian FDI experience and because no such comprehensive summary has been available. / The first part of the analysis focused on the determinants of FDI. Determinants of FDI according to different theoretical models were discussed and tested using five types of datasets: aggregate quarterly data, country-specific annual data, industry-specific annual data, country- and industry-specific data (from the US, the UK, Japan and Germany and US) and US form-specific data. Australian FDI inflows were found to be driven by economic growth and market size, wages and labour supply (though the signs varied across models), trade and openness (though customs duties encouraged Japanese industry-specific FDI), interest rates, exchange rate appreciation, inflation rate (which had a unexpected positive effect) and the investing country’s overall FDI outflows. Corporate tax rates were only significant in the quarterly FDI model, but they had an unpredicted positive sign. Australian FDI was driven by longer term considerations and its determinants could not be fully explained by any single theory, but a variety of theoretical models. Furthermore investment decisions depend on factors such as investment origin, the industry in which the investment takes place and the form of the investment, making aggregation difficult. / The second part of the analysis focused on consequences of FDI. Consequences of FDI according to different theoretical models were discussed and tested using two types of datasets: aggregate quarterly data and industry-specific annual data. FDI inflows had positive effects on economic growth and domestic investment, supporting the Australian government’s view that FDI is a favourable source of capital. However, the claim that FDI is favourable for Australia’s balance of payments position could not be supported by this analysis. FDI led to a reduction in export growth and no direct effect on import growth, though the effect of FDI on GDP growth led to increased import growth. Furthermore, industry-specific FDI in Australia had significant effects on employment growth (negative) and labour productivity growth (positive), while FDI growth had significant effects on real wage growth (negative) and industry concentration (positive). However, effects may differ depending on the FDI form, and Australia should focus more on attracting beneficial FDI (such as export-oriented or import-substituting FDI) rather than FDI in general.

<p>Trade openness, market size, transparency, ease of doing business, location advantagesand low levels of corruption and country risk are the main determinants that attractForeign Direct Investment into a host country. FDI inflows in México have increasedremarkably since 1994 when the North America Free Trade Agreement (NAFTA) cameinto effect. Using multiple regression analysis in order to measure the impact of FDI onGDP; the Empirical results showed that a one percent increase in FDI leads on average toan increase of 0.08 percent in GDP which clearly reflects a positive but neither animportant nor a substantial impact of FDI on economic growth in México as it would beexpected. Time series data analysis for the period 1980-2007 has been tested for UnitRoot by applying the Dickey-Fuller (DF) test. Each time series after the first differencebecomes stationary and therefore it might be a causal relationship among the variables.However, FDI will not have a real impact on the society unless there is an effective stockof Human Capital capable of learning and absorbing the know-how to work successfullywith the technology that Multinational Corporations bring into the host country with theirinvestment. The challenge for the Mexican Government is to create structural reformssuch as the deregulation of energy and oil sector for private investment that will lead toconstantly higher flows of FDI. In the medium term this will then be reflected in thesociety in terms of poverty reduction and development of its population.</p>

This diploma thesis is aimed to investigate both theoretically and empirically the impact of migration on the development of the sending countries. It applies the "Three Rs" approach to examine how migrants can shape development reshape in their areas of origin via 3Rs: Recruitment, Remittances, and Return. Emphasis is put on remittances, the most visible aspect of international migration. In particular, regression analysis were carried out, using time series data over the period 1990-2014, to establish a relationship between remittances and development aspects such as economic and human development as well as comparing them with the effect of FDI and ODA. The findings indicate that migration through remittances play an influential role in the Philippines development but it comes at a price, too.

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This doctoral thesis contains three essays on the macroeconomic impact of inflation targeting: (1) Inflation-targeting regime, as a framework for monetary policy conduct, has been adopted by central banks in thirty countries. Some of these countries enjoy high incomes while others have middle incomes. In contrast to the development-based classification –often applied in the literature, thus ignoring income disparity– this study employs income-based classification in constructing the data sample. The objective is to investigate, using a panel of middle-income countries, whether inflation targeting is a good remedy for high inflation. In addition to the commonly used covariates in the literature, this study also includes in its covariate matrix the worldwide governance indicators as proxy for institutional quality. The findings exhibit a significant reduction of inflation and its volatility among the inflation-targeting adopters compared to the non-adopting middle-income countries. The results are robust to the exclusion of high inflation episodes, and to using the alternative measures of inflation. The results are also robust to the post-estimation sensitivity tests recommended for such empirical analysis. (2) Many economists acknowledge the paramount role that foreign investment plays in fostering economic development and growth via integrating economies around the globe. Studies have shown that foreign investment, particularly foreign direct investment (FDI) is attracted to countries that exhibit good governance, low uncertainty and a high degree of macroeconomic stability. The literature also argues that monetary policy under inflation targeting (IT) mitigates uncertainty, enhances governance and brings macroeconomic stability to the adopting countries. Hence, it would seem that the IT-adoption should enable the adopting countries attract the largest FDI inflows. To verify this conjecture, this study performs a comparison between the IT-adopting countries and the non-adopters in attracting FDI. Using a panel of OECD and middle-income countries, the empirical findings exhibit an interesting but contradicting pattern: when it comes to the OECD countries, the results show that the IT-adopters do better than the non-adopters in attracting the FDI inflows. For the middle-income countries, however, the IT-adoption appears to have the opposite effect: a significant reduction in the FDI inflows is witnessed among the IT-adopters compared to their counterparts. The results are robust to the post-estimation sensitivity tests. (3) Inflation targeting, as a monetary-policy framework, is said to promote economic efficiency and growth. Yet, when evaluating the macroeconomic performance of inflation-targeting regimes, the existing literature only emphasizes the dynamics of inflation and the costs associated with taming inflation. There is hardly any assessment of the claim of efficiency and growth. To fill this gap, and to measure the causal impact of inflation-targeting adoption on economic efficiency, we compare the dynamics of output growth and long-term unemployment between countries that have adopted inflation targeting and the non-adopting countries. Our findings seem to refute the efficiency claim, and paint a bleak picture of inflation targeting: when compared to the countries that did not adopt inflation targeting, there is a significant reduction in the average growth rate among the inflation-targeting adopters by over ½ percentage point. Additionally, long-term unemployment significantly rises among the inflation-targeting countries by almost 2 percentage points as compared to the non-adopters. These results are robust to both the exclusion of the outlier observations and to the sensitivity tests recommended for such analysis.

India has become one of the most important countries in a globalized world and foreign direct investments (FDI) are part of it. FDI have been supported by the Indian government since 1991. This paper aims to describe and analyze inflows of FDI into Indian economy. FDI will be analyzed from many angles after the first part which deals with the basic features of India. Third part deals with Indian policy towards FDI and the last one with some of the possible future oportunities to increase FDI inflows into India.