Related papers: FDI versus R\&D in an endogenous growth model
As global economic integration progresses, foreign-funded enterprises play an increasingly crucial role in fostering local economic growth and enhancing industrial development. However, there are not many researches to deal with this aspect…
This study investigates how Development Finance Institutions (DFIs) contribute to de-risking development in Sub-Saharan Africa by shaping Foreign Direct Investment (FDI) flows and supporting sustainable economic transformation. Focusing on…
Industrial policy has returned to the centre of economic governance, particularly in the high-tech sectors where positive network externalities in demand make market dominance self-reinforcing. This paper studies the welfare effects of an…
Behavioural finance offers a valuable framework for examining foreign exchange (FX) market dynamics, including puzzles such as excess volatility and fat-tailed distributions. Yet, when it comes to their interaction with the `real' side of…
This paper aims to study the impact of public and private investments on the economic growth of developing countries. The study uses the panel data of 39 developing countries covering the periods 1990-2019. The study was based on the…
We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover…
Since its emergence around 2010, deep learning has rapidly become the most important technique in Artificial Intelligence (AI), producing an array of scientific firsts in areas as diverse as protein folding, drug discovery, integrated chip…
Most explanations of economic growth are based on knowledge spillovers, where the development of some technologies facilitates the enhancement of others. Empirical studies show that these spillovers can have a heterogeneous and rather…
The strategic choice of model "openness" has become a defining issue for the foundation model (FM) ecosystem. While this choice is intensely debated, its underlying economic drivers remain underexplored. We construct a two-period…
We study the productivity implications of R&D, capital accumulation, and innovation output for entrants and incumbents in Estonia. First, in contrast to developed economies, a small percentage of firm engage in formal R&D, but a much larger…
Innovation is among the key factors driving a country's economic and social growth. But what are the factors that make a country innovative? How do they differ across different parts of the world and different stages of development? In this…
The escalating challenge of climate change necessitates an urgent exploration of factors influencing carbon emissions. This study contributes to the discourse by examining the interplay of technological, economic, and demographic factors on…
We develop an agent-based model of strategic link formation in Research and Development (R&D) networks. Empirical evidence has shown that the growth of these networks is driven by mechanisms which are both endogenous to the system (that is,…
Leadership in the field of AI is vital for our nation's economy and security. Maintaining this leadership requires investments by the federal government. The federal investment in foundation AI research is essential for U.S. leadership in…
We study how artificial intelligence (AI) affects firms' incentives to pursue incremental versus radical knowledge recombinations. We develop a model of recombinant innovation embedded in a Schumpeterian quality-ladder framework, in which…
This study examines the relationship between globalization and income inequality, utilizing panel data spanning from 1992 to 2020. Globalization is measured by the World Bank global-link indicators such as FDI, Remittance, Trade Openness,…
This paper investigates whether foreign investment (FDI) into Africa is at least partially responsive to World Bank-measured market friendliness. Specifically, I conducted analyses of four countries between 2009 and 2017, using cases that…
This article examines how unequal access to AI innovation creates systemic challenges for developing countries. Differential access to AI innovation results from the acute competition between domestic and global actors. While developing…
This study investigates the relationship between innovation activities and firm-level productivity among early-stage high-tech startups in China. Using a proprietary dataset encompassing patent records, R&D expenditures, capital valuation,…
To advance the United Nations Sustainable Development Goal on promoting sustained, inclusive, and sustainable economic growth, foreign direct investment (FDI) plays a crucial role in catalyzing economic expansion and fostering innovation.…