Dynamic model of the technology spillover from foreign direct investment and productivity growth: a case from Thailand Online publication date: Mon, 22-Feb-2016
by Pard Teekasap
J. for Global Business Advancement (JGBA), Vol. 9, No. 1, 2016
Abstract: This paper studies the relationship between technology spillover from foreign direct investment (FDI) and productivity growth through the development of a dynamic model. The model has been developed based on the feedback numerical simulation approach. The variables included in the model are productivity, gross domestic product (GDP), GDP per capita, FDI, employment and gross fixed capital formation (GFCF). The model has been applied to the Thailand context as a case study. The results show that increase in technology spillover can gradually increase the productivity of the country and the GDP per capita. Higher GDP per capita will attract more FDI into the country but with a significant delay. When the unemployment rate is low, reducing technology spillover can increase the unemployment rate but more technology spillover does not reduce the unemployment rate.
Online publication date: Mon, 22-Feb-2016
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for Global Business Advancement (JGBA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org