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As is evidenced from the literature, FDI is assumed to transfer technology, promote learning by doing, train the labour, and in general result in the spillovers of human skills and technology. It also promotes the growth of output of the sectors, raises their labour productivity and export performances. On this line, it is very important to examine the impact of FDI inflows on the sector specific variables like labour productivity, output and export. The main sectors included for this measurement are power and fuels (PF), Electrical Equipments (EL), Transport (TR), Chemicals (CH), Food Processing (FP), Metallurgical (ME), Drugs and Pharmaceuticals (DP), Textiles (TE), and Industrial Machinery (IN). The study uses the Panel co-integration (PCONT)3 technique in order to examine the impact of...
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