Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334789 
Year of Publication: 
2022
Citation: 
[Journal:] Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration [ISSN:] 1804-8048 [Volume:] 30 [Issue:] 3 [Article No.:] 1615 [Year:] 2022 [Pages:] 1-12
Publisher: 
University of Pardubice, Pardubice
Abstract: 
This paper examines the relationship between total factor productivity, trade openness, and foreign direct investment to economic growth in 90 middle-income countries from 1990 to 2020. We employ the Generalized Method of Moments with country and period fixed effects to overcome heteroscedasticity and endogeneity issues. The findings indicate a percentage increase in net FDI inflows and Trade Openness improves economic growth by 0.13% and 0.19%, respectively. However, total factor productivity negatively impacts growth due to the improper allocation of resources across sectors. Our paper contributes policy implications to develop economies sustainably. Finally, our findings support comparative advantage (Ricardo, 2015), the internalization theory of Buckley and Casson (1976), and industrialization theories.
Subjects: 
FDI
Trade Openness
Total Factor Productivity
Economic growth
Middle-income countries
JEL: 
B17
B27
F43
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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