This article analyses the impact of trade and foreign investment on a small but not so open economy, Australia, whose growth rate outpaced the majority of the OECD countries in the last decade. We model five channels of outward orientation: exports, imports, foreign direct investment, foreign...

Much of the endogenous growth literature has dwelled on evaluating the spillover effects of trade on growth, but much less efforts have been directed towards tracing and quantifying the spillover effects of foreign investments. This paper, in incorporating the effects of various types of foreign...

This paper examines the determinants of technological catching-up across 63 countries over the period 1982-2000. A two-stage empirical approach is adopted. In the first stage, the technological divide between individual countries and the global frontier, known as the metafrontier ratio (MFR), is...

The literature on the spillover effects of trade and inflows of foreign direct investment (FDI) has concentrated on technological externalities. Little effort has been directed towards identifying their efficiency externalities. This paper measures the efficiency externalities of trade and...

Development involves changes in social, economic and institutional structures. Quantifying development requires a large array of variables with different characteristics often highly correlated. A factor analysis approach using inferential decisions based on computed standard errors is proposed....