Pesheva, Milena; Vasilev, Aleksandar - In: South-Eastern Europe Journal of Economics 15 (2017) 2, pp. 127-145
This paper estimates the contribution of Foreign Direct Investment (FDI) to the Total Factor Productivity (TFP) of Bulgaria for the period 2004-2013. As predicted by theory, a positive relationship between TFP and FDI is documented. The standard Ramsey (optimal) growth model, augmented with the...