外文翻译--FDI和贸易对经济增长的影响：来自发展中国家的实证分析

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1、2090英文单词，1.2万英文字符，中文 3415 字  本科毕业论文外文翻译  外文题目：   Impact of foreign direct investment and trade on economic   growth:evidence from developing countries                   出     处：    American Journal of Agricultural E

2、conomics, Vol. 86                     Issue 3                                              作     者：    Makki, Shiva

3、 S.,Somwaru, Agapi                         原    文：  IMPACT OF FOREIGN DIRECT INVESTMENT AND TRADE ON ECONOMIC GROWTH: EVIDENCE FROM DEVELOPING COUNTRIES Foreign direct investment (FDI) and trade are often seen as important ca

4、talysts for economic growth in the developing countries. FDI is an important vehicle of technology transfer from developed countries to developing countries. FDI also stimulates domestic investment and facilitates improvements in human capital and institutions in the host countries. International tr

5、ade is also known to be an instrument of economic growth (Romer). Trade facilitates more efficient production of goods and services by shifting production to countries that have comparative advantage in producing Them. Even though past studies show that FDI and trade have a positive impact on econom

6、ic growth, the size of such impact may vary across countries depending on the level of human capital, domestic investment, infrastructure, macroeconomic stability, and trade policies. The literature continues to debate the role of FDI and trade in economic growth as well as the importance of economi

7、c and institutional developments in fostering FDI and trade. This article analyzes the role of FDI and trade in promoting economic growth across  2 selected developing countries and the interaction among FDI, trade, and economic growth. We examine data from sixty-six developing countries over t

8、he last three decades. Our results suggest that FDI, trade, human capital, and domestic investment are important sources of economic growth for developing countries. We find a strong positive interaction between FDI and trade in advancing economic growth. Our results also show that FDI stimulates do

9、mestic investment. The contribution of FDI to economic growth is enhanced by its positive interaction with human capital and sound macroeconomic policies. Methodology and Data    Our econometric model is derived from a production function in which the level of a countrys productivity depen

10、ds on FDI, trade, domestic investment, human capital, and initial gross domestic product (GDP) per capita. The model is based on endogenous growth theory, in the tradition of Balasubramanyam, Salisu, and Sapsford and Borensztein, Gregorio, and Lee, where FDI contributes to economic growth directly t

11、hrough new technologies and other inputs as well as indirectly through improving human capital, infrastructure, and institutions. To assess empirically the effects of FDI and trade on economic growth, we specify the following basic formulation: g=a+b1FDI+b2TRD+b3HC+b4K+b5G0   +c1FDI TRD+c2FDI H

12、C+c3FDI K             （ 1）    +d1TRI+d2TX+d3GC+e where g is the per capita GDP growth rate； TRD, the trade (exports plus imports) of goods and services； HC, the stock of human capital； K, the domestic capital investment； G0, the initial GDP(initial stock)； IRT

13、, the inflation rate； TX, the tax on income, profits, and capital gains in the host country expressed as percentage of current revenue； and GC is government consumption. The variables FDI, TRD, K, GC are measured as ratios to GDP. We also account for interaction of FDI with trade and domestic invest

14、ment, in addition to human capital. Past empirical studies have indicated that FDI, trade, human capital, and domestic investment have a positive impact on economic growth in developing countries. We expect the estimated coefficients for these variables to be positive. We also expect positive intera

15、ctions between FDI and trade and FDI and domestic capital investment in promoting economic growth.    The stock of human capital in a host country is critical for absorbing foreign knowledge  3 and an important determinant of whether potential spillovers will be realized. We postulate

16、 not only a positive relationship between FDI and the GDP growth rate but also a positive interaction between FDI and human capital in advancing economic growth. The application of advanced technologies embodied in FDI requires a sufficient level of human capital. That is, the higher the level of hu

17、man capital in a host country, the higher the effect of FDI on the countrys economic growth. One of the key questions regarding FDI and economic growth is: What is the interaction between FDI and domestic investment? As argued before, FDI is an important vehicle for the transfer of capital, technolo

18、gy, and knowledge to host countries, thereby generating high-growth opportunities. In practice, however, the growth-enhancing impact of FDI depends critically on the absorptive capacity of a host country and whether FDI crowds out its domestic investment. Thus, an important question to be addressed

19、is: What is the extent to which FDI substitutes for or complements domestic investment? In our empirical model, we include FDI and domestic investment separately as well as an interaction term between FDI and domestic investment (FDI K). A positive coefficient for the interaction term would suggest

20、that FDI and domestic investment (K) reinforce (complement) each other in advancing economic growth. The initial GDP, measured in terms of constant U.S. dollars, controls for preexisting economic and institutional conditions in the host economy. We expect the initial GDP (expressed in logarithms) to

21、 be negatively related with GDP growth rates. The inflation rate is a key indicator of fiscal and monetary policies of a country. A lower inflation rate should mean a better climate for investment, trade, and, therefore, economic growth. Government consumption and tax on income, profits, and capital

22、 gains are proxies for institutions and infrastructure in the host countries. Since our objective is to quantify the effects of FDI and trade on economic growth, we focus on developing Countries.  Data for our analysis are obtained from the World Development Indicators (WDI) database. However,

23、we limit our analysis to 1971 through 2000 because the flow of FDI to most developing countries began in 1970s. All variables represent the average over the following decades: 19711980, 19811990, and 19912000. We estimate a system of three equations, where the dependent variables are the mean values of per capita GDP growth rates in each decade. We estimate the system of equations using the seemingly unrelated regression (SUR) method as well as instrumental variable