scholarly journals Public and Foreign Investment Spending in the Argentine Case. A Cointegration Analysis with Structural Breaks, 1960-2015.

2020 ◽  
pp. 49-76
Author(s):  
Miguel Ramirez
Keyword(s):  
Labor Force ◽  
Labor Productivity ◽  
Latin American ◽  
Productivity Growth ◽  
Public Investment ◽  
Private Investment ◽  
Cointegration Analysis ◽  
Labor Productivity Growth ◽  
Investment Spending ◽  
The Impact

This paper examines whether public investment spending and inward foreign direct investment (FDI) enhance labor productivity growth in Argentina. Using annual data, it estimates a dynamic labor productivity function for the 1960-2015 period that incorporates the impact of public and private investment spending, education expenditures, the labor force, and export growth. It tests for both single and two-break unit root tests, as well as performing cointegration tests with an endogenously determined regime shift over the 1960-2015 period. Cointegration analysis suggests that a long-term relationship exists among the relevant variables. The error correction (EC) models suggest that (lagged) increases in public investment spending and education have a positive and significant effect on the rate of labor productivity growth Also, the model is estimated for a shorter period (1970-2015) to capture the impact of inward FDI flows. The estimates suggest that (lagged) FDI flows have a positive and significant impact on labor productivity growth, while increases in the labor force have a negative effect. From a policy standpoint, the findings call into question the politically expedient policy in many Latin American countries, including Argentina during the 1990s and 2000s, of disproportionately reducing public capital expenditures on education and infrastructure to meet reductions in the fiscal deficit as a proportion of GDP. The results give further support to pro-investment and pro-growth policies designed to promote public investment spending and attract inward FDI flows.

scholarly journals Effects of Foreign Direct Investment and Trade on Labor Productivity Growth in Vietnam

2020 ◽  
Vol 13 (9) ◽  
pp. 204
Author(s):  
Hidekatsu Asada
Keyword(s):  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Direct Investment ◽  
Important Lesson ◽  
Ardl Model ◽  
Labor Productivity Growth ◽  
Long Run ◽  
Short Run ◽  
The Impact

Among developing Asian countries that have accelerated their integration with the global economy, Vietnam has achieved remarkable economic development. Vietnam’s development strategy prioritizing the promotion of trade and foreign direct investment (FDI) resulted in the rapid transformation of its industrial structure from an agro-based one to one led by the export-oriented manufacturing sector in the past three decades. Given the importance of labor productivity growth on the structural transformation, the study examined the effects of FDI and trade on labor productivity growth in Vietnam in the long run and short run. The study employed the autoregressive distributed lag (ARDL) model of analysis using data from 1990 to 2017. The ARDL model analysis revealed that FDI, capital goods import, and export unanimously contributed to the labor productivity growth in the long run, while the impact in the short run remained ambiguous. The results confirm the theoretical framework augmenting the positive relationship that exists between FDI and trade and labor productivity growth. Vietnam’s experience is expected to provide an important lesson to other developing countries.

scholarly journals FDI Flows to Latin America: A Pooled and Cointegration Analysis, 1980-2014

2017 ◽  
Vol 7 (2) ◽  
pp. 178
Author(s):  
Miguel D. Ramirez
Keyword(s):  
Latin America ◽  
Latin American ◽  
Fixed Effects ◽  
Banking Sector ◽  
Public Investment ◽  
Cointegration Analysis ◽  
Real Gdp ◽  
Institutional Determinants ◽  
Investment Spending ◽  
Positive Direct

This paper estimates a pooled (fixed-effects) FDI investment function that seeks to identify some of the major economic and institutional determinants of net FDI flows to nine major Latin American countries during the 1980-2014 period. First, it develops a conceptual framework of analysis that seeks to identify some of the major economic and institutional determinants of FDI. Second, the paper gives an overview of FDI flows to Latin America during the 1990-2015 period, with particular emphasis on their contribution to the financing of gross capital formation. Third, an empirical model for FDI flows to Latin America is outlined and an economic rationale is provided for the included variables and their expected signs. Fourth, the estimates from a panel regression designed to explain the variation in FDI flows to Latin America during the 1980-2014 period suggests that market size (proxied by real GDP), credit provided by the private banking sector, government expenditures on education, and the level of economic freedom as measured by the Fraser Institute have a positive and significant effect. On the other hand, public investment spending, the volatility of real GDP and the real exchange rate have a negative and significant effect on FDI flows. The panel unit root tests on the residuals of the relevant panel regressions also suggest that there is a stable, long-term relationship among the included variables; i.e., the selected variables in the reported regressions are cointegrated over the relevant time period. Finally, the paper summarizes the major findings and offers some policy prescriptions for attracting FDI flows to the region and enhancing their positive direct and indirect effects. 

scholarly journals The impact of human capital on labor productivity growth in Vietnam

2019 ◽  
Vol 3 (2) ◽  
pp. 104-110
Author(s):  
Nguyen Thi Dong ◽  
Le Thi Kim Hue
Keyword(s):  
Human Capital ◽  
Human Resources ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Labor Productivity Growth ◽  
Raising Awareness ◽  
Labor Training ◽  
Investment Capital ◽  
The Impact

This paper applies Mankiw model to consider the relationship between human capital and labor productivity in the period of 1996 - 2017. Research results have shown that the contribution of human capital to labor productivity growth is only 14%, while investment capital does not reflect the change in labor productivity. The cause of this result is determined by the inadequacy in the allocation of investment capital and the situation of labor training not based on the trend of restructuring the sectors of the economy, so the quality of human resources not yet promoted and utilized. Therefore, in order for human capital to become one of the important factors to promote labor productivity in the future, Vietnam needs to implement three specific solutions: Firstly, raising awareness of the role of human capital in the process of labor productivity growth; Secondly, education and training should be developed to improve the quality of human capital; Thirdly, focus on developing human resources in the field of science and technology to transform the growth model from width to depth.  

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