Date of Graduation

Spring 5-16-2014

Document Type

Thesis

Degree Name

Master of Science in International and Development Economics (MSIDEC)

Department/Program

Economics

First Advisor

M.C. Sunny Wong

Abstract

In this paper, firm-level data from manufacturing sector in five African countries is obtained to estimate the impact of foreign direct investment (FDI) on firm’s technical efficiency. Unbalanced panel data over period of 1991-2003 shows that the existence of FDI has a significant impact on domestic firms’ technical efficiency. The results remain robust after controlling for country and year fixed effect. Other determinants of technical efficiency are investigated as well and the results show that firm size and export behavior increases efficiency while firm age lowers efficiency

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Economics Commons

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