The Impact of Foreign Direct Investment Spillover Effects on Total Factor Productivity in Sri Lanka

1
Kalaichevi Ravinthirakumaran
Kalaichevi Ravinthirakumaran
2
Tarlok Singh
Tarlok Singh
3
Eliyathamby Selvanathan
Eliyathamby Selvanathan
4
Saroja Selvanathan
Saroja Selvanathan
1 Griffith University

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The purpose of this study is to investigate the effect of foreign direct investment and official development assistance on tax burden in Jordan employing the Auto-Regressive Distributed Lags Bounds Testing (ARDL BT) co-integration approach to the data ranging from 1991 to 2018. The results indicated that there is a long-run relationship among variables. The results showed that there is a positive and statistically significant effect of the ratio of foreign direct investment to GDP (FDI) on tax burden (TB) in the long run, and a positive and statistically significant effect of the ratio of official development assistance to GDP (ODA) on tax burden (TB) in the long run. The estimation results indicate that a 1% increase in (FDI) increases (TB) by 0.53%, and a 1% increase in (ODA) increases (TB) by 1.45%. This study is the first of its kind in examining the impact of foreign direct investment and official development assistance together on the tax burden in Jordan.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Kalaichevi Ravinthirakumaran. 2020. \u201cThe Impact of Foreign Direct Investment Spillover Effects on Total Factor Productivity in Sri Lanka\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 20 (GJMBR Volume 20 Issue D1): .

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GJMBR Volume 20 Issue D1
Pg. 38- 49
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: E20, F21, O32
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June 10, 2020

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English

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The purpose of this study is to investigate the effect of foreign direct investment and official development assistance on tax burden in Jordan employing the Auto-Regressive Distributed Lags Bounds Testing (ARDL BT) co-integration approach to the data ranging from 1991 to 2018. The results indicated that there is a long-run relationship among variables. The results showed that there is a positive and statistically significant effect of the ratio of foreign direct investment to GDP (FDI) on tax burden (TB) in the long run, and a positive and statistically significant effect of the ratio of official development assistance to GDP (ODA) on tax burden (TB) in the long run. The estimation results indicate that a 1% increase in (FDI) increases (TB) by 0.53%, and a 1% increase in (ODA) increases (TB) by 1.45%. This study is the first of its kind in examining the impact of foreign direct investment and official development assistance together on the tax burden in Jordan.

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The Impact of Foreign Direct Investment Spillover Effects on Total Factor Productivity in Sri Lanka

Kalaichevi Ravinthirakumaran
Kalaichevi Ravinthirakumaran Griffith University
Tarlok Singh
Tarlok Singh
Eliyathamby Selvanathan
Eliyathamby Selvanathan
Saroja Selvanathan
Saroja Selvanathan

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