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FOREIGN CAPITAL AND EFFICIENCY IN DEVELOPING COUNTRIES
Author(s) -
Mastromarco Camilla
Publication year - 2008
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.2008.00283.x
Subject(s) - frontier , foreign direct investment , economics , developing country , human capital , capital good , investment (military) , stochastic frontier analysis , international economics , capital (architecture) , foreign capital , monetary economics , macroeconomics , microeconomics , market economy , public good , production (economics) , economic growth , history , archaeology , politics , political science , law
This paper uses stochastic frontier methodology to analyse foreign direct investment, imported capital goods and human capital as channels for increased efficiency in less‐developed countries. Empirical investigation reveals that developing countries differ with respect to the efficiency with which they use frontier technology. Foreign direct investment and human capital play a significant and quantitatively important role in explaining these differences.