标题：Assessing the relationship between total factor productivity and foreign direct investment in an economy with a skills shortage: the case of South Africa
摘要：This paper assesses the relationship between total factor productivity (TFP) and foreign direct investment (FDI) in a
country with skills shortage. South Africa is used as a case study. Literature is inconclusive on how FDI should affect
TFP. This paper shows that it is important to account for the interactivity between FDI and human capital when
assessing the effects of FDI on TFP. Moreover, the empirical results show that, contrary to countries with abundance
of skills, in countries with skills shortage, it is in fact the change in stock of human capital - or human capital
accumulation – that matters in determining the effects of FDI on TFP.
