The role of foreign capital in domestic manufacturing productivity: empirical evidence from Asian economies
Authors: Chamarbagwala, Rubiana; Ramaswamy, Sunder; Wunnava, Phanindra V.
Source: Applied Economics, Volume 32, Number 4, 20 March 2000 , pp. 393-398(6)
Abstract:The paper empirically examines the relative contribution of foreign and domestic machinery and equipment on manufacturing productivity in seven Asian economies. A Cobb-Douglas production function is used to test whether foreign machinery is more productive than domestic machinery. The study is based on a pooled cross-sectional time-series model, including seven countries - Hong Kong, Singapore, South Korea, Malaysia, Indonesia, the Philippines and India - for the years 1975 to 1990. The results support the hypothesis that a country's stage of development, skill-level of its labour force, and the technology embodied in capital play a crucial role in determining the relative impact of foreign and domestic capital on manufacturing productivity.
Document Type: Research Article
Publication date: March 20, 2000