Impact of foreign direct investment on research and development, and income inequality

This dissertation consists of two independent essays, both of which are empirical assessments of economic impacts of foreign direct investment. The first essay investigates the impact of foreign direct investment (FDI) inflows on R&D activities in 48 developing countries, covering the 1996-201...

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Main Author:	Mahamad Zakaria, Muhammad Farhan
Format:	Thesis
Language:	English
Published:	2015
Subjects:	Investments Foreign
Online Access:	http://psasir.upm.edu.my/id/eprint/58480/1/FEP%202015%202IR.pdf
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id	my-upm-ir.58480
record_format	uketd_dc
spelling	my-upm-ir.584802018-01-24T04:36:52Z Impact of foreign direct investment on research and development, and income inequality 2015-10 Mahamad Zakaria, Muhammad Farhan This dissertation consists of two independent essays, both of which are empirical assessments of economic impacts of foreign direct investment. The first essay investigates the impact of foreign direct investment (FDI) inflows on R&D activities in 48 developing countries, covering the 1996-2013 period. Based on the system Generalized Method of Moment (GMM) approach, our panel data analysis suggests that FDI inflows tend to discourage R&D activities in the host countries. This finding is consistent with the view that competition introduced by FDI encourages local firms to opt for a cheaper way for technology upgrading via imitation. Moreover, there is evidence that R&D activities in developing countries has benefited from imported technologies and stronger legal protection for R&D activities. The second essay tests the impact of FDI on income inequality in ASEAN-5 countries,namely Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Using the quantile regression methodology and a data set for the 1980-2013 period, the findings reveal that FDI inflows into Indonesia, Malaysia, Singapore and Thailand appear to widen income inequality. In the Philippines, FDI is found to have a reducing effect on income inequality. These findings suggest that countries with different economic environments tend to derive different benefits and costs from FDI inflows. Investments, Foreign Investments, Foreign - Developing countries Investments, Foreign - Asia 2015-10 Thesis http://psasir.upm.edu.my/id/eprint/58480/ http://psasir.upm.edu.my/id/eprint/58480/1/FEP%202015%202IR.pdf application/pdf en public masters Universiti Putra Malaysia Investments, Foreign Investments, Foreign - Developing countries Investments, Foreign - Asia
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Investments Foreign Investments Foreign Investments Foreign
spellingShingle	Investments Foreign Investments Foreign Investments Foreign Mahamad Zakaria, Muhammad Farhan Impact of foreign direct investment on research and development, and income inequality
description	This dissertation consists of two independent essays, both of which are empirical assessments of economic impacts of foreign direct investment. The first essay investigates the impact of foreign direct investment (FDI) inflows on R&D activities in 48 developing countries, covering the 1996-2013 period. Based on the system Generalized Method of Moment (GMM) approach, our panel data analysis suggests that FDI inflows tend to discourage R&D activities in the host countries. This finding is consistent with the view that competition introduced by FDI encourages local firms to opt for a cheaper way for technology upgrading via imitation. Moreover, there is evidence that R&D activities in developing countries has benefited from imported technologies and stronger legal protection for R&D activities. The second essay tests the impact of FDI on income inequality in ASEAN-5 countries,namely Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Using the quantile regression methodology and a data set for the 1980-2013 period, the findings reveal that FDI inflows into Indonesia, Malaysia, Singapore and Thailand appear to widen income inequality. In the Philippines, FDI is found to have a reducing effect on income inequality. These findings suggest that countries with different economic environments tend to derive different benefits and costs from FDI inflows.
format	Thesis
qualification_level	Master's degree
author	Mahamad Zakaria, Muhammad Farhan
author_facet	Mahamad Zakaria, Muhammad Farhan
author_sort	Mahamad Zakaria, Muhammad Farhan
title	Impact of foreign direct investment on research and development, and income inequality
title_short	Impact of foreign direct investment on research and development, and income inequality
title_full	Impact of foreign direct investment on research and development, and income inequality
title_fullStr	Impact of foreign direct investment on research and development, and income inequality
title_full_unstemmed	Impact of foreign direct investment on research and development, and income inequality
title_sort	impact of foreign direct investment on research and development, and income inequality
granting_institution	Universiti Putra Malaysia
publishDate	2015
url	http://psasir.upm.edu.my/id/eprint/58480/1/FEP%202015%202IR.pdf
_version_	1747812213806071808

Impact of foreign direct investment on research and development, and income inequality

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