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Peter Kannen, Julian Donaubauer and Dierk Herzer
 
''How do South-South and North-South FDI affect total factor productivity growth in developing countries?''
( 2017, Vol. 37 No.1 )
 
 
This study uses a unique dataset to examine not only the effect of total FDI on TFP growth in a large sample of developing countries but also, and especially, the productivity growth effects of South-South versus North-South FDI. It is found that total FDI has a significant positive effect on TFP growth in developing countries. However, this effect is driven by North-South FDI; while South-South FDI is insignificant and sometimes negative, North-South FDI exerts a statistically significant positive effect on TFP growth in developing countries.
 
 
Keywords: FDI, TFP, Developing countries
JEL: F2 - International Factor Movements and International Business: General
O4 - Economic Growth and Aggregate Productivity: General
 
Manuscript Received : Oct 17 2016 Manuscript Accepted : Mar 05 2017

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