Endogenizing total factor productivity : the Foreign Direct Investment channel in the case of Bulgaria (2004-2013)

Milena Pesheva (Independent researcher), Aleksandar Vasilev (PhD, CERGE-EI Affiliate Fellow and Assistant Professor, Economics Department, American University in Bulgaria)

This paper estimates the contribution of Foreign Direct Investment (FDI) to the Total Factor Productivity (TFP) of Bulgaria for the period 2004-2013. As predicted by theory, a positive relationship between TFP and FDI is documented. The standard Ramsey (optimal) growth model, augmented with the FDI channel is used to compare the speed of convergence to an identical setup without FDI. Convergence simulations prove that ignoring the implications of this model leads to a distorted view of the growth path of the economy. The results of the study can serve as justification for development of governmental strategies for attracting FDI inflows.

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Year of publication:	2017
Authors:	Pesheva, Milena ; Vasilev, Aleksandar
Publisher:	[Kiel : ZBW
Subject:	simulation \| endogenous growth \| TFP \| FDI \| Auslandsinvestition \| Foreign investment \| Bulgarien \| Bulgaria \| Produktivität \| Productivity \| Endogenes Wachstumsmodell \| Endogenous growth model \| Simulation \| Theorie \| Theory \| Wirtschaftswachstum \| Economic growth \| Schätzung \| Estimation \| Spillover-Effekt \| Spillover effect

Extent:	1 Online-Ressource (circa 33 Seiten) Illustrationen
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/163553 [Handle]
Classification:	E13 - Neoclassical ; E17 - Forecasting and Simulation ; E22 - Capital; Investment (including Inventories); Capacity ; O33 - Technological Change: Choices and Consequences; Diffusion Processes
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011714665