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Working Paper

Catching up of Emerging Economies: The Role of Capital Goods Imports, FDI Inflows, Domestic Investment and Absorptive Capacity

Kiel Working Papers, 1990

Authors

  • Glas
  • A.
  • Hübler
  • M.
  • Nunnenkamp
  • P.

Publication Date

JEL Classification

F14 F21 O47

Key Words

absorptive capacity

ausländische Direktinvestitionen

BRICs

foreign direct investment

imports

total factor productivity

Related Topics

International Trade

Foreign Direct Investments

We assess the role of capital goods imports and inflows of foreign direct investment (FDI) as transmission channels through which major emerging economies (BRICs, i.e., Brazil, Russian Federation, India and China) could catch up with advanced source countries in terms of total factor productivity (TFP). We find that the importance of these transmission mechanisms depends on the BRICs’ local capacity to absorb superior technologies and on domestic investment.

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