Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/194341
Authors: 
Malikane, Christopher
Chitambara, Prosper
Year of Publication: 
2017
Citation: 
[Journal:] Journal of African Trade [ISSN:] 2214-8515 [Volume:] 4 [Year:] 2017 [Issue:] 1/2 [Pages:] 61-74
Abstract: 
This paper investigates the impact of foreign direct investment on total factor productivity conditional on relative backwardness in a panel of 45 African countries over the period 1980-2012. We use two measures of relative backwardness, namely: the distance from technological frontier and the income gap. We apply the fixed-effects and two-step system GMM methods. We find a generally positive but weak effect of FDI on productivity growth. Meanwhile, the results do not support the convergence theory of Findlay (1978) and Wang and Blomstrom (1992), that relative backwardness would result in higher productivity growth via the adoption of foreign technologies.
Subjects: 
Foreign direct investment
Total factor productivity
Technology gap
Africa
JEL: 
E22
F21
F23
O16
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
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