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Faculty of Management, Multimedia University, Cyberjaya, Malaysia. Faculty of Business, Multimedia University, Melaka, 75450, Malaysia.
Elsadig Musa AHMED
Faculty of Management, Multimedia University, Cyberjaya, Malaysia. Faculty of Business, Multimedia University, Melaka, 75450, Malaysia.
Vol 26 No 3 (2017), Articles, pages 57-72
Submitted: 03-12-2017 Accepted: 03-12-2017 Published: 03-12-2017
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This paper inspects the influence of Foreign Direct Investment (FDI) inflows on
the catching up process developed by labour, physical capital, human capital, absorptive
capacity, telecommunications investment, and export channel on Asia Pacific's sustainable
productivity growth. A panel data from the period of 1970 to 2012 was used. The modified
extensive growth theory model that is based on output approach was applied. Both
growth accounting and econometric approaches were considered to estimating the
parameters of variables in first step and in the second step productivity indicators were
calculated. The results show that the FDI inflows and inputs used are input driven that
was generally more predominant than total factor productivity (TFP) growth. Meanwhile,
The GDP grew significantly during the periods of the study by development of human
capital, export, and telecommunications investment (input driven) variables, which
supported by FDI inflows. Accordingly, the impact of export channel on the TFP growth
found to be positive with insignificant contribution in most the group selected countries.
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