The main aim and purpose of this seminar is to examine, analyze and present the impact of FDI Inward stock and ICT capital on the economic growth of an economy considering the sample countries. As a general structure, the essay would first give an introduction about economic Globalization and its indicators particularly focusing on FDI and ICT. On the literature review part of the essay, cited definitions and theoretical background of FDI and ICT are presented. In an attempt to strengthen the essay, a brief insight into Economic growth and the linkage between FDI, ICT and economic growth is included. The empirical analysis of this essay investigates econometric relations and presents econometric results from the conducted analysis based on the collected data from the sample countries. Growth accounting approach using supply-side Cobb-Douglas production function is applied to look at the economic impact of growth rate of FDI Inward stock and growth rate of ICT capital on economic growth.
The econometric analysis is structured in a way to first look at the separate impacts of the two independent variables on economic growth which is measured by growth rate of real GDP. Secondly, as a final model, the combined impact of the two independent variables on the growth rate of real GDP is presented and discussed. Standard panel data models are applied to investigate the empirical relationship pertaining to the selected BRICS countries (Brazil, Russia, India, China and South Africa). Data collected from year 1995 to 2015 is considered for the forthcoming econometric analysis. Finally, a summary of the work with conclusion and policy recommendation is given.
Table of Contents
1 Introduction
2 Literature review
2.1 Theoretical foundations and definitions
2.2 Links between ICT, FDI and economic growth
3 Empirical analysis
3.1 Framework
3.2 The Research Question
3.3 Methodology and scope
3.4 The Data
3.5 Model Specification
3.5.1 Growth Accounting Specification
3.6 Econometric test and empirical result presentation
3.6.1 Econometric tests for model choice
3.6.2 Empirical results
4 Summary, conclusion and recommendation
Research Objectives and Focus Areas
This paper aims to investigate the individual and combined impact of Foreign Direct Investment (FDI) inward stock and Information Communication Technology (ICT) capital on the economic growth of BRICS countries. Utilizing a growth accounting approach with a supply-side Cobb-Douglas production function, the study assesses how these indicators drive real GDP growth while controlling for trade openness in the panel data analysis covering 1995 to 2015.
- Economic growth patterns in BRICS nations (Brazil, Russia, India, China, and South Africa).
- Theoretical and empirical linkages between FDI, ICT capital, and economic productivity.
- Application of econometric panel data modeling (Pooled OLS and Fixed-Effects) to test growth hypotheses.
- The role of trade openness as a control variable in macroeconomic performance.
- Evaluation of growth accounting models to distinguish the impact of technology and capital inputs.
Excerpt from the Book
3.2 The Research Question
So far, the theoretical background of the impact economic Globalization on economic growth in general and the impacts of two indicators of economic Globalization (FDI and ICT) in particular has been discussed. On this seminar work, the author is motivated to look into these two indicators of economic Globalization that are assumed to have significant impacts on economic growth of the leading emerging economies-BRICS.
The basic research questions that are thus building up the hypothesis of this seminar are: Does economic Globalization impact the economic growth of a country? What are the contributions of FDI and ICT for the economic growth? Accordingly, the hypothesis: FDI inward stock and ICT play a significant role in economic growth of a country would be empirical tested.
Summary of Chapters
1 Introduction: Provides an overview of economic globalization, identifying FDI and ICT as critical drivers for growth in emerging economies, specifically the BRICS group.
2 Literature review: Establishes the theoretical framework by defining FDI and ICT, and explores existing research on their relationship with productivity and economic expansion.
3 Empirical analysis: Details the mathematical framework, data sources, and econometric methodology used to quantify the impact of FDI and ICT capital on real GDP across BRICS nations.
4 Summary, conclusion and recommendation: Synthesizes the empirical findings, confirming the significant positive contribution of ICT and FDI, and provides policy recommendations for improving data collection in developing regions.
Keywords
Economic Growth, FDI Inward stock, ICT, Growth Accounting, BRICS, Globalization, Panel Data, Cobb-Douglas, Trade Openness, Productivity, Econometrics, Capital Accumulation, GDP, Technology Transfer, Emerging Economies.
Frequently Asked Questions
What is the primary objective of this seminar paper?
The primary objective is to analyze the impact of FDI inward stock and ICT capital on the economic growth of the BRICS countries using an empirical econometric approach.
What are the central thematic areas covered in this work?
The central themes include the indicators of economic globalization, the theoretical foundations of economic growth models, and the specific role of technological progress and foreign capital in emerging markets.
What is the core research question addressed by the author?
The research asks whether economic globalization, specifically through FDI and ICT, impacts the economic growth of a country and whether these variables play a significant role in the growth of BRICS economies.
Which scientific methods are applied in the empirical analysis?
The author employs a growth accounting approach using a supply-side Cobb-Douglas production function, complemented by panel data econometric models such as Pooled OLS and Fixed-Effects estimators.
What does the main body of the work focus on?
The main body focuses on constructing and testing econometric models to evaluate the separate and combined impacts of FDI and ICT capital on real GDP growth, while using trade openness as a control variable.
Which keywords best describe this study?
Key terms include Economic Growth, FDI Inward stock, ICT, Growth Accounting, BRICS, and Econometric Analysis.
Why were the BRICS countries chosen for this study?
The BRICS nations represent major emerging economies that significantly influence world economic growth, making them an ideal case study for examining the effects of globalization indicators.
What conclusions does the author reach regarding the combined impact of FDI and ICT?
The study finds that both FDI and ICT capital, combined with trade openness, have a positive and statistically significant impact on the economic growth of the BRICS sample countries.
What specific data limitation does the author mention?
The author highlights the scarcity and difficulty in obtaining accurate and reliable longitudinal data regarding ICT capital and investment specifically for developing economies.
- Arbeit zitieren
- Behailu Shiferaw Benti (Autor:in), 2018, Impact of Foreign Direct Investment (FDI) and Information Communication Technology (ICT) on economic growth, München, GRIN Verlag, https://www.grin.com/document/493933
