The effect of foreign direct investment (FDI) on economic growth (GDP): Case of Ecuador
- 주제(키워드) International Trade and Public Policy
- 발행기관 아주대학교
- 지도교수 Kim, TaeBong
- 발행년도 2017
- 학위수여년월 2017. 2
- 학위명 석사
- 학과 Graduate School of International Studies 국제통상학과
- 실제URI http://www.dcollection.net/handler/ajou/000000023986
- 본문언어 영어
초록/요약
Foreign Direct Investment (FDI), theoretically speaking, is one financing source to accelerate economic development. It helps to improve the welfare of a country throughout the generation of employment, transfer of technology, capital accumulation, etc. However, several empirical studies have suggested that there is either a negative or positive impact on the economic growth. Those different results can be explained because of the particular characteristics of each study such as the period of time, methodologies, type of data, etc. Despite the facts that Ecuador's economy was ranked as eighth in the largest economies in Latin America with an average of 4.6% of GDP Growth during the period from 2000 to 2006, the development of the country is restricted. For instance, Ecuador adopted the US dollar as a national currency, the economy is highly dependent on oil exportation and a populist and protectionist governmental framework was imposed during the last 10 years. Consequently, there are few incentives for foreign investors and competitive disadvantages due to the cost opportunity in comparison to similar economies in Latin America. This research conducts a theoretical and empirical approach. It uses an adapted estimated model and econometric techniques in order to understand the positive contribution of FDI to the economic growth specifically in the case of Ecuador. In addition, it provides a precise interpretation of its interaction with human capital, capital accumulation and transfer of technology. Finally, this research provides enough evidence and suggestions to modify governmental policies to promote foreign direct investment as a way to develop the country.
more목차
CHAPTER I: INTRODUCTION 1
1.1. Foreign Direct Investment (FDI) 1
1.2. Economic Growth 2
1.3. Foreign direct investment in Latin America and the Caribbean 2
1.4. Trade openness policy changes of Ecuador 4
1.5. FDI and Economic Growth in Ecuador 8
CAHPTER II: THEORETICAL REVIEW 15
2.1. Theoretical and empirical contribution of related studies 15
CHAPTER III: EMPIRICAL ANALYSIS OF THE EFFECT OF FDI ON THE ECONOMIC GROWTH 22
3.1. Econometric Model and Regression Result 22
3.2. Methodology 22
CHAPTER IV: CONCLUSION AND RECOMMENDATIONS 35
BIBLIOGRAPHY 38
APPENDIX 40
