The Effect of foreign direct investment on structural change in developing countries: an examination of the labor productivity dimension

Developing countries require overall labor productivity to sustain their economic growth. Overall labor productivity, on the other hand, cannot be achieved without structural change. Because developing countries lack sufficient resources, foreign direct investment (FDI) is recommended for them to realize structural change. Therefore, the primary purpose of this study is to estimate the effect of FDI on the structural change in labor productivity in developing countries from 1990 to 2018 using Driscoll and Kraay's estimation. The study found that foreign direct investment boosts overall labor productivity by facilitating "structural change" and Ezo Emako