Welcome to the InfoSci Platform
Reference Hub2
Diffusion of Technology via FDI and Convergence of Per Capita Incomes: Comparative Analysis on Europe and the MENA Region

Diffusion of Technology via FDI and Convergence of Per Capita Incomes: Comparative Analysis on Europe and the MENA Region

Sumru Oz
Copyright: © 2016 |Pages: 29
ISBN13: 9781466695481|ISBN10: 146669548X|EISBN13: 9781466695498
DOI: 10.4018/978-1-4666-9548-1.ch012
Cite Chapter Cite Chapter

MLA

Oz, Sumru. "Diffusion of Technology via FDI and Convergence of Per Capita Incomes: Comparative Analysis on Europe and the MENA Region." Handbook of Research on Comparative Economic Development Perspectives on Europe and the MENA Region, edited by M. Mustafa Erdoğdu and Bryan Christiansen, IGI Global, 2016, pp. 236-264. https://doi.org/10.4018/978-1-4666-9548-1.ch012

APA

Oz, S. (2016). Diffusion of Technology via FDI and Convergence of Per Capita Incomes: Comparative Analysis on Europe and the MENA Region. In M. Erdoğdu & B. Christiansen (Eds.), Handbook of Research on Comparative Economic Development Perspectives on Europe and the MENA Region (pp. 236-264). IGI Global. https://doi.org/10.4018/978-1-4666-9548-1.ch012

Chicago

Oz, Sumru. "Diffusion of Technology via FDI and Convergence of Per Capita Incomes: Comparative Analysis on Europe and the MENA Region." In Handbook of Research on Comparative Economic Development Perspectives on Europe and the MENA Region, edited by M. Mustafa Erdoğdu and Bryan Christiansen, 236-264. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-4666-9548-1.ch012

Export Reference

Mendeley
Favorite

Abstract

This chapter analyzes the convergence of incomes towards the FDI home country in Europe and in the MENA region, separately; and the prerequisites to derive benefit from FDI in a comparative manner. The per capita income convergence towards the major FDI home country, US, is estimated higher for Europe compared to the MENA region. However, the differences in the convergence values are not so wide between some sub-groups of these two regions. The absorptive capacity hypothesis, together with the investment capacity explains the discrepancies between not only the two regions as a whole, but also sub-groups within each region. The strong complementary effects between FDI and both absorptive and investment capacity suggest that economic policy aimed at fostering growth should try to benefit more from FDI by increasing the absorptive capacity-enhancing own R&D activities and promoting human capital- as well as by improving investment environment to attract more of it.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.