This paper tests the endogenous relationship between Foreign Direct Investment (FDI) growth and economic growth using a panel data set for 23 Organisation for Economic Co-operation and Development (OECD) countries for the period 1975-2004. In particular we estimate a two-equation simultaneous...

In this paper, we extend the Romer (1990) model in two ways. First, we include energy consumption of intermediates. Secondly, intermediates become heterogeneous due to endogenous energy saving technical change. However, aggregate effective capital is still subject to endogenous technical change...