Foreign direct investment and total factor productivity in Bolivia

ABSTRACT

This paper finds a positive long-run effect of FDI on total factor productivity through a cointegration analysis of Bolivian time series data over the period 1980–2011.

KEYWORDS:

• FDI
• TFP
• Bolivia
• cointegration

JEL CLASSIFICATION:

• F21
• O47
• C22

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

¹ The coefficient on the first 4 years is the return to schooling in sub-Saharan Africa (13.4%). The coefficient on the second 4 years is the world average return to schooling (10.1%). The coefficient on schooling above 8 years is the OECD return to schooling (6.8%). All coefficients are taken from Psacharopoulos (1994).