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Estimating Technical Progress In Central And Eastern Europe. What Role For Fdi?

Author

Listed:
  • Jude Cristina

    (UBB Cluj Napoca, FSEGA)

  • Vaidean Viorela

    (UBB Cluj Napoca, FSEGA)

Abstract

Technical progress is a key factor in economic growth, mainly due to its productivity enhancement. It is a fact that most innovation and new technologies are created in developed countries. International trade and FDI are the main channels for technology transfer. Our objective is to determine the role of FDI in technical progress. In this paper, we start with two questions: is there evidence of significant contribution of technical progress to economic growth? And if there is, what is the role of FDI in technical progress? Using a production function approach, we estimate the TFP and we regress it on the stock of FDI, in a panel framework. We find evidence of positive correlation.

Suggested Citation

  • Jude Cristina & Vaidean Viorela, 2010. "Estimating Technical Progress In Central And Eastern Europe. What Role For Fdi?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 262-269, December.
    • Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:262-269
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    References listed on IDEAS

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    More about this item

    Keywords

    technical progress; Solow residual; FDI;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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