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Influence of National System of Innovation on the Trajectory of Foreign Direct Investment

Abstract
The ability to absorb and use effectively FDI flows by countries to enhance their national
productive systems is directly related to the degree of functioning of an economy’s national
innovation system. We develop a heuristic NSI-FDI framework that proposed three types of
NSIs (well functioning/strong, relatively well functioning, and weak) in relation with three
types of corresponding FDI outcomes (High-end, Medium or Average, and Low-end). We
then selected both large and small developing economies -- China, India, South Africa,
Ghana, Ethiopia, Tanzania, and Zambia with both different NSIs and FDI flows. The
countries were differentiated with respect to core differences in the types of NSIs. Using
descriptive data we analysed the nature of FDI flows and their impacts or outcomes in these
countries and showed that the characteristics of the NSI in these countries largely shaped
the flow and the impact of FDI on these economies.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:tut/oai:encore.tut.ac.za:d1001619
Date01 December 2008
CreatorsMuchie, M, Baskaran, A
ContributorsMiddlesex University Business School
PublisherTshwane University of Technology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeText
FormatPdf
RightsTshwane University of Technology
RelationInstitute for Economic Research on Innovation

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