FDI inflows play a very important role in increasing the productivity of factors of production through the channel of technology transfer and establishment of MNCs. This study empirically analyzes the causal relationship, for both short and long run, between FDI inflows, labor productivity and...

All countries are eager to attract as much foreign investments as possible. At the same time FDI may have not only positive, but also negative economic effects for receiving countries. Positive effects are associated with technology transfer, efficient allocation of resources, and training of...