毕业论文外文翻译原稿范文(一)
嘉兴学院本科毕业论文外文翻译
论文题目：浙江利用FDI的业绩与潜力分析
学院：商学院专业班级：国经061 学生姓名：孙静蓉
外文题目：Foreign Direct Investment And Growth: New Evidences from Sub-Saharan African countries
出处：University of Technology, Mauritius
University of Mauritius
作者： B Seetanah A J Khadaroo
原文1：
Foreign Direct Investment And Growth:New Evidences from Sub-Saharan African countries
B Seetanah ,A J Khadaroo
Abstract
The paper investigates the impact of foreign direct investment(FDI) on economic growth for a panel of 39 Sub-Saharan African countries for the period 1980–2000.An extended Cobb Douglas production function is used whereby investment is disaggregated into its different types namely domestic private,foreign direct and public investment for more insights comparative analysis.Taking into account the possible existence of endogeneity in FDI modeling,the study employs both static and dynamic panel data estimates.Results from the analysis suggest that FDI is an important element in explaining economic performance of Sub Saharan African countries,though to a lesser extent as compared to the other types of capital.Moreover the study confirms the presence of important endogeneity in FDI-growth relationship
as FDI is not only seen to lead growth but to follow growth as well.
1.Introduction
There is a general theoretical consensus among development economists that foreign direct investment(FDI)inflows is likely to play a critical role in explaining growth of recipient countries(De Mello,1997,1999;Buckley et al.,2002;Akinlo,2004 provide detailed literature survey).FDI inflows in fact represent additional resources a country needs to improve its economic performance and provides both physical capital and employment possibilities that may not be available in the host market.As De Gregorio(1992)argued ‘by increasing capital stock,FDI can increase country’s output and productivity through a more efficient use of existing resources and by absorbing unemployed resources’.However,the economic impact of FDI remains more contentious in empirical than in theoretical studies.While many studies observe positive impacts of FDI on economic growth,others also reported a negative relationship and among the main reasons for this controversy remain data insufficiency and methodological flaws.Earlier cross country studies failed to take into account continuously evolving country-specific differences in technology,production and socioeconomic factors and it is only recently that empirical studies have made use of panel data to correct the above(see Bende-Nabende&Ford,1998;Nair-Reichert&Weinhold,2001;Bende-Nabende et al,2003;Choe,2003).In effect,FDI may have a positive impact on economic growth leading to an enlarged market size,which in turn attracts further FDI as well.This is referred to as the market size hypothesis,that is markets with rapid economic growths tend to give multinational firms more opportunities to generate greater sales and profits and thus become more attractive to their investments.Given the possible interdependency of these two variables,there is a need for a proper test of endogeneity.Moreover a very scarce amount of work has been devoted on the relationship between FDI and growth in developing countries,particularly for African economies.
This research thus attempts to complement the few empirical works have undertaken on the FDI-growth hypothesis in the case of Africa.For aims at investigating the empirical link between FDI inflows and economic performance for a
panel of 39 Sub Saharan African countries,selected as per data availability,for the period 1980-2000 using panel data regression techniques.The study further allows for dynamics and endogeneity issues by using dynamic panel data estimates,namely the Generalised Methods of Moments (GMM)method.Such empirical evidences from Sub-Saharan African countries are believed to add to the growing literature in the debate.
The paper is organised as follows,section 2 reviews the literature review,section 3 discusses the empirical approach,the data used and also analyses the econometric results.The last section concludes the study.
2.Literature Review
Foreign direct investment has been proved in the literature to be an important promoter of growth in its own right.In effect,foreign direct investment is argued to increase the level of domestic capital formation.This also implies producing on large scale which in turn results in benefits of economies of scale and specialisation and also increasing export and employment opportunities.These are likely to result in positive economic impacts.
Foreign direct investment is a particularly key ingredient of successful economic growth in developing countries because the very essence of economic development is the rapid and efficient transfer and cross border adoption of ‘best practices’,be it managerial and technical best practice or deployment of technology from abroad(Borensztein et al.,1998).Proximity and better access to large market is also well known to attract foreign direct investment that in turn implies often accelerated technology transfer.As such better worker training dispensed by foreign investors has often been argued to raise the level of productivity.Countries can in effect use such firms as catalysts that allow them to leapfrog stages in development.Foreign direct investment can thus speed up the structural shift of the economy.FDI has also been argued to act as a catalyst for inward investment by complementing local resources and providing a signal of confidence in investment opportunities(Agosin and Mayer,2000).New FDI projects may invite complementary local private investments that provide inputs to,or use outputs of,the foreign firm. A substantial part of foreign investment projects is usually financed from local financial markets as well.It should
be noted that the foreign capital inflows,by themselves,can lead to an increase in domestic credit supply(Jansen,1995).
FDI also beneficially affect the productive efficiency of domestic enterprises.Local firms have an opportunity to improve their efficiency by learning and interacting with foreign firms.FDI can also raise the quality of domestic human capital and improve the know-how and managerial skills of local firms(the learning by watching effect).Moreover FDI stimulates the development and propagation of technological skills through multinational corporations’internal transfers and through linkages and spillovers among firms (Borensztein et al,1998).Finally FDI also helps to increase local market competition, create modern job opportunities and increase market access of the developed world (Noorbakhsh,Paloni,Y oussef,2001)all of which should ultimately contribute to economic growth in recipient countries.
3.Methodology And Analysis
We follow recent studies in the field(see Nyatepe-Coo,1998;De Bende-Nabende and Ford,1998;Mello,1999;Bende-Nabende et al.,2002,2003 and Li and Liu,2005 among others)by specifying an extended Cobb-Douglas production function(equation
1) to represent the production technology of an economy .Investment is decomposed in three types namely,domestic private investment,foreign direct investment and also government investment.Such disaggregation allows us to fully investigate the role of FDI in economic development and permits useful comparative insights among the different types of investment as well.
3124
it it it it it t i Y A K FDI L G ββ
ββ
= （1）
The Cobb-Douglas function ，i represents the countries and t the time dimension. Y denotes the economy’s output,A the shift in the production function attributed to technical progress,which is assumed to be risk neutral,K the domestic private investment,FDI is the foreign direct investment,G is the public investment and L is labour.
The different investment types of each respective country ,that is the domestic private investment(K),the foreign direct investment(FDI)and the public investment(G)(note that aggregating all these generates each country’s total investment)are measured as the ratio of the amount of each investment type to the
GDP of the country .The main sources of data are from the International Monetary Fund’s Internationa l Financial Statistics(IFS) (various issues),World Development Indicators(various issues),from African Development Bank,Selected Statistics on African Countries(2000)and the World Investment Directory published by the United Nations.
The proxy used for Labour(L)is the employment level of the countries in the sample.The data were available from the(IFS),World development indicators(various issues) and from various country Central Statistics Websites.
The dependent variable output was proxied by the real Gross Domestic Product at constant price(Y) and was generated from the Summers and Heston(version 6.0).The data set used covers 39 Sub Saharan African countries(as per data availability)over the period 1980–2000.
Econometric modeling and analysis of results
Taking logs on both sides of the equation(1)，the following econometric regression function:
1234t t t t t t t y fdi g k l ββββαε=+++++ （2）
where the coefficientsβ1,β2,β3 andβ4 are the output elasticities of the factor inputs and ε is the error term.
Cross-Section and Pooled OLS Analysis
We performed cross section(averaged over the sample period 1980-2000)and pooled OLS analysis of our hypothesis for some preliminary results.Standard errors of the OLS regression were corrected by the White procedure.White(1980)proposed the heteroskedasticity-robust variance matrix estimator to adjust the standard errors of a regression in the presence of heteroskedasticity .The results are reported in table 1 (column 2 and 3).The positive and significant coefficient of fdi from the cross section analysis suggests that FDI has been an ingredient of economic growth of African economies over the period of study ,although to a lesser extent as the other types of investment.The results are consolidated when using Pooled OLS estimates.The limitations of using a single-equation OLS cross sectional regression model and pooled OLS are known(see Kennedy 2003).To overcome these short comings,panel data techniques are advised.
Panel Data Estimates
We employ both static and dynamic(Generalised Methods of Moments)panel data techniques to analyse the role of FDI in the economic growth of our sample of country.In fact use of panel data allows not only to control for unobserved cross country heterogeneity but also to investigate dynamic relations.To test whether to use a random effect or a fixed effect estimation approach,the Hausman test has been used.In fact the Hausman test tests the null hypothesis that the coefficients estimated by the efficient random effects estimator are the same as the ones estimated by the consistent random effects estimator. Recommended the use of random effects model and table 1(column 4)reports the relevant estimates.
Table 1:Panel data estimates:Random effects(39 countries x 21 years(1980-2000))
Dependent variable y=(log of Y).
*significant at 10%,**significant at 5%,***significant at 1%
No serial correlation was detected according to Bhargava,Franzini and Narendranathan(BFN)(1982).
Random effects estimates suggests that FDI to Sub Saharan African countries has been an important element in explaining growth performance,although as earlier seen,to a lower extent as compared to the other types of capital,namely domestic private and public capital.This positive contribution is in line with the theoretical underpinnings discussed earlier.The effect of FDI in these economies is also reported to be relatively less as compared to other studies,for instance De Gregorio(1992)for Latin American countries, Borensztein et al.,(1998)for a panel countries,Wang(2002)for the Asian economies case and Campos and Kinoshita(2002)for transitional economies.This may be explained by the fact that African countries have been among the lowest beneficiaries of FDI. Foreign direct investment flows to Africa have registered a steady decline during the years.During the period of study,most FDI flows to developing countries were directed towards the South,East and South-Eastern Asia followed by Latin America with Africa accounting for 4-5%of total FDI flow to developing world.According to the WIR(2001) African share of FDI in the world fell below 1 percent in 2000.Sub-Saharan Africa also registered the same trend.
Sub Saharan African countries have thus been depending mainly on domestic private investment and public investment as well.Despite the relatively lower flow of FDI in these economies,explaining probably its small effect,such type of investment is still seen from the study to play a non negligible role in economic growth.It is believed that higher level of FDI in these economies would be accompanied with
higher growth rates.
4.Conclusion
The paper investigated the relationship between FDI and the economic performance for the case of 39 African countries over the period 1980-2000.Capital stock,as proxied by investment ratios,has been disaggregated into its different components namely domestic private,FDI and public investment as well in an attempt to disentangle the effect of FDI.Results from the static random effects estimates shows that FDI has a positive and significant effect on the level of economic growth,particularly with respect to developing countries.The contribution of foreign direct investment is however observed to be relatively less as compared to the other type of investment.Moreover it is also on the lower side on non African economies and this might be explained by the fact African countries have been among the lowest beneficiaries of FDI.The positive link is also confirmed when using GMM panel estimates which moreover suggested the presence of dynamic in the system.Thus FDI does not only precede growth and output level of the country but also followed growth.The above results highlight the economic importance of FDI and provide new evidences for the case of African economies.
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