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The links between openness and productivity in Mediterranean countries
[journal article]
Abstract We examine the relation between the international trade, the foreign direct investment and the total factor productivity of the Mediterranean partner countries of Europe within the framework of a cointegrated panel model.
The results, obtained from data on seven Mediterranean partner countries of Eu... view more
We examine the relation between the international trade, the foreign direct investment and the total factor productivity of the Mediterranean partner countries of Europe within the framework of a cointegrated panel model.
The results, obtained from data on seven Mediterranean partner countries of Europe (Algeria, Egypt, Israel, Jordan, Morocco, Tunisia, Turkey), show that FDI and human capital are complementary in the acquisition of productivity gains. We identify the threshold level of human capital from which the received foreign investments generate beneficial effects.
In a more general way, the improvement of the total factor productivity via the international openness results only from the indirect effects related to the transfer of technology.... view less
Document language
English
Publication Year
2008
Page/Pages
p. 685-697
Journal
Applied Economics, 40 (2008) 6
DOI
https://doi.org/10.1080/00036840600749771
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)