The aim of this study is to show the mathematical procedure of the explanation of Abramowitz and Gerschenkron in catching-up process. For this purpose Findlay’s model is taken as a benchmark model. Findlay emphasizes two points. First, direct foreign investments make catch-up process possible by raising productivity. A backward country, should implement a policy that promotes direct foreign investments instead of raising domestic saving rate. Second, a backward country should increase human capital investments while promoting direct foreign investments in order to make returns of the direct foreign investments endogeneous.
Keywords
Economic Growth, Catch-Up, Direct Foreign Investments.
@article{2016,title={CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH},abstractNode={The aim of this study is to show the mathematical procedure of the explanation of Abramowitz and Gerschenkron in catching-up process. For this purpose Findlay’s model is taken as a benchmark model. Findlay emphasizes two points. First, direct foreign investments make catch-up process possible by raising productivity. A backward country, should implement a policy that promotes direct foreign investments instead of raising domestic saving rate. Second, a backward country should increase human capital investments while promoting direct foreign investments in order to make returns of the direct foreign investments endogeneous.},author={Merter MERT},year={2016},journal={The Journal of Academic Social Science}}
Merter MERT . 2016 . CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH . The Journal of Academic Social Science.DOI:10.16992/ASOS.11787
Merter MERT.(2016).CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH.The Journal of Academic Social Science
Merter MERT,"CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH" , The Journal of Academic Social Science (2016)
Merter MERT . 2016 . CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH . The Journal of Academic Social Science . 2016. DOI:10.16992/ASOS.11787
Merter MERT .CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH. The Journal of Academic Social Science (2016)
Merter MERT .CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH. The Journal of Academic Social Science (2016)
Format:
Merter MERT. (2016) .CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH The Journal of Academic Social Science
Merter MERT . CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH . The Journal of Academic Social Science . 2016 doi:10.16992/ASOS.11787
Merter MERT."CATCH-UP AND DIRECT FOREIGN INVESTMENTS IN ECONOMIC GROWTH",The Journal of Academic Social Science(2016)