Mario Zejan

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NBER Working Papers and Publications

August 1993Is Fixed Investment the Key to Economic Growth?
with Magnus Blomstrom, Robert E. Lipsey: w4436
This paper examines shares of fixed capital formation in GOP and rates of economic growth for more than 100 countries over successive 5-year periods between 1965 and 1985 to determine the direction of causality between them. Simple regressions and multiple regressions including several standard determinants of growth, as well as a simple causality test, provide more evidence that increases in growth precede rises in rates of capital formation than that increases in capital formation precede increases in growth. High rates of fixed capital formation accompany rapid growth in per capita income, but we find no evidence that fixed investment is the only or main source of ignition for economic growth.

Published: Quarterly Journal of Economics, vol CXI, Issue 1, Feb 1996, pp. 269-276. citation courtesy of

August 1992What Explains Developing Country Growth?
with Magnus Blomstrom, Robert E. Lipsey: w4132
Among developing countries, there was no gross relationship between real income per capita in 1960 and subsequent growth in per capita income. However, once other significant influences, such as education, changes in labor force participation rates, inflows of foreign investment, price structures, and fixed investment ratios are taken into account, the lower the 1960 income level, the faster the income growth. This "conditional" convergence was particularly strong among the poorest half of the developing countries, contradicting the idea of a "convergence club" confined to relatively well-off countries. Inflows of direct investment were an important influence on growth rates for higher income developing countries, but not for lower income ones. For the latter group, secondary education, ch...

Published: "What Explains the Growth of Developing Countries" in William Baumol, Richard Nelson and Edward Wolff, eds., Convergence and Productivity: Cross-National Studies and Historical Evidence, Oxford, Oxford University Press, 1994

Host Country Competition and Technology Transfer by Multinationals
with Magnus Blomstrom, Ari Kokko: w4131
This paper examines whether rivalry in host country markets may force multinational films to increase the technology transfer to their foreign affiliates. Such technology flows should be interesting from the perspective of the host country and its firms, since they would increase the potential for "spillovers". Using detailed (unpublished) industry data from Mexican manufacturing industry we find that indicators for local competition are positively related to the technology imports of foreign owned affiliates. The effects appear to be strong in consumer goods industries, which suggest that foreign multinationals are especially sensitive to the local market environment when barriers to entry in the form of complex technology or high capital requirements are relatively low.

Published: Weltwirtschaftliches Archiv, Review of World Economics, Band 130, Heft 3pp. 521-533, (1994)

May 1989Why Do Multinational Firms Seek Out Joint Ventures?
with Magnus Blomstrom: w2987
This paper uses a model of dichotomous choice to distinguish the characteristics of Swedish multinational firms that seek out joint ventures from those that do not. The findings suggest that firms with little experience of foreign production and highly diversified product lines are the most likely to share equity. In general, it is found that multinational firms that have the most to offer the developing countries are reluctant to enter into joint venture agreements. Therefore, imposing joint-venture status on multinationals may prevent the inflow of advanced technologies.

Published: Journal of International Development, Vol. 3, No. 1, pp. 53-63, (1991).

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