FDI spillover effects on Asia-Pacific sustainable productivity growth, Dr Elsadig Ahmed and Rahim Kialashki
Dr Elsadig Ahmed
Multimedia University
Malaysia
Rahim Kialashki
Multimedia University
Malaysia
Purpose: The objective of the study is to examine the impact of Foreign Direct Investment (FDI) spillover eff ects on sustainable productivity growth of selected Asia-Pacifi c countries such as (Malaysia, Indonesia, Singapore, Philippines, Thailand, China,
Japan, Korea, India, Australia and New Zealand).
Design/methodology/approach: The extensive growth theory that is expressed the decomposition of contribution of changes
in labour force, physical capital, FDI, Human Capital (HC), telecommunications investment and Total Factor Productivity (TFP)
growth on selected Asian Pacifi c countries output growth is used in this study. In this respect, an annual time series data over the period of 1970 to 2012 for the aforementioned variables is employed.
Findings: The study found that the FDI spillover eff ects through the TFP, considered being productivity driven economic growth in which FDI spillover eff ects has signifi cant eff ect on productivity growth of the majority of these countries. It should be noted that most of these countries showed technological progress through FDI spillover eff ects that is translated into form of technology transfer and HC skills development.
Originality: This study empirically compared the FDI spillover eff ects on sustainable productivity growth of the most growing countries in Asia Pacifi c region by using modifi ed extensive growth theory that closed the gaps in the past studies and addressed the issues of technology transfer, HC development and sustainable productivity growth brought by the technical progress in these countries through the FDI spillover eff ects on productivity growth.
Keywords: Foreign Direct Investment (FDI) spillover eff ects; Asian Pacific selected countries; sustainable productivity growth.
Citation: Ahmed, E., Kialashki, R. (2016): FDI spillover effects on Asia-Pacific sustainable productivity growth. In Ahmed, A. (Ed.): Europe at a Crossroads and the Impact of Globalization, Vol. 14, pp. 411-418.
