Foreign Direct Investment (FDI) and Economic Growth Dissertation or Thesis by lamtungvn

Foreign Direct Investment (FDI) and Economic Growth
An analysis of the relationship between foreign direct investment (FDI) and economic growth in the Czech Republic.
# 68917 | 10,937 words | 100 sources | APA | 2006 | GB
Published on Sep 20, 2006 in Economics (Globalization) , Economics (International)

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Foreign direct investment (FDI) has increased rapidly over the past years, especially after the promotion of the International Monetary Fund (IMF) and World Bank. The aim of this paper is to examine whether there is a positive relationship between FDI and the economic growth in the Czech Republic, with special emphasis on technology and productivity spillovers. It focuses especially on two hypotheses, in the form of a case study. The first hypothesis is that technological and productivity spillover from FDI can lead to an increase in economic growth in the Czech Republic. The second hypothesis is that the Czech government can be an extra incentive for economic growth. Formulas show different solutions to different questions in economic growth. The paper discusses the Keynes' GDP model, the purchasing power parity (PPP), as well as Solow's total factor productivity (TFP) and multi factor productivity (MFP) and Cob-Douglas elastic growth equation, that includes technology development into the equation.

Chapter 1: Introduction
1.1 Economic Growth and FDI
Inflows to the Czech Republic
1.2 Introduction to Relevant Theoretic
And Empirical Studies
1.3 Research Aims and Objectives
1.4 Chapter Review
Chapter 2: Literature Review
2.1 FDI vs. Economic Growth
2.1.1 Technology and Productivity Spill Over
Transfers through FDI
2.1.2 Employment Creation:
2.1.3 Capital
2.1.4 Export
2.2 Other Factors vs. Economic Growth
2.2.2 Government Expenditure
2.2.3 Population Size
2.2.4 Openness
2.3 Conclusion
2.3.1 Role of the Literature in the Dissertation
Chapter 3 Methodology
3.1 Research Methodology Method:
H.1.1) There Has Been Economic
Growth in the Czech Republic.
H.1.2) Technology and Productivity
Spillovers Apply To The Czech Republic.
3.2 Conclusion
Chapter 4: Data
4.1 Data Collection
4.2 Data Analysis Keynes
GDP Equation
World Bank PPP Equation
Solow TFP Equation
Solow MFP Equation
Cob-Douglas Equation
Chapter 5: Conclusion
5.1.1 The First Objective Is To Give A
General Understanding of FDI
And Economic Growth
5.1.2 Second Is To Discuss According To A
Case Study Spillovers of FDI into the Czech Market
5.1.3 Thirdly, How the Czech Government
Can Be an Extra Incentive for Economic Growth
5.2 Boundaries and Constraints
5.3 Need for Further Research is Recognized

From the Paper:

"Multinational companies (MNCs) find it profitable to invest abroad because they own specific assets, one of which is the multinational's access to better production technology. (Caves, 1996) The role of transaction costs in the development of MNCs is seen as very important by McManus. Transaction costs can arise when transferring goods and or services, which can be a lot of money that is not necessary. When a MNC invests in a foreign market it overcomes those costs. (McManus1987) The relation between income inequality in Local Domestic Companies (LDCs) and FDIs is seen as a generally positive by Tsai. (Tsai 1995)"

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MLA Format

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