International Technology Diffusion: Effects of Trade and FDI
- Topics:
- Forecasting,
- Human Capital
- Tags:
- Business Operations,
- Currency & Foreign Exchange,
- Diffusion,
- Finance,
- Foreign Direct Investment,
- Foreign Direct Investment (FDI),
- Investment,
- Research & Development
- Source:
- Thomson Gale
Vendor Registration: required
Overview: This paper investigates both trade and FDI as channels of international R&D diffusion. Generally, trade has a stronger effect on TFP than FDI. More interestingly, the authors also find that there exist different effects of FDI and trade on R&D diffusion in DCs and LDCs. Both trade and FDI have positive and significant impacts on international R&D diffusion among the 20 OECD countries in the sample. However, FDI from DCs to LDCs does not promote technology improvement in host LDCs unless the human capital passes a certain threshold level in LDCs.
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Format: HTML | Date: Dec 2005
