Building the Index of Efficiency of FDI Transformation: Economic Development and Intellectual Capital
We propose an original approach to constructing an index of efficiency of FDI transformation into steady economic and innovation growth. As factors of efficient transformation we consider many institutional indicators. We rank countries on the sample of 31 developed and developing economies. The results of bivariate and multivariate Granger tests show that FDI causes economic development and intellectual capital in a number of indicators. With non-parametric DEA method and Malmquist Index we identify countries at the efficiency frontier by the quality of FDI management. Change in efficiency over time along the IC growth path is highly influenced by government effectiveness.