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

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

Kalaichevi Ravinthirakumaran

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Tarlok Singh

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Eliyathamby Selvanathan

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Saroja Selvanathan

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Griffith University

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

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Abstract

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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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.

How to Cite 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

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Journal Specifications

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

Submission ReceivedDecember 6, 2019
Peer Review Double Blind
Handling Editor
Accepted January 4, 2020
Published January 15, 2020

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June 10, 2020

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