Trade, Foreign Direct Investment, and International Technology Transfer : A Survey

What role does trade play in international technology transfer? Do technologies introduced by multinational firms diffuse to local firms? What kinds of policies have proved successful in encouraging technology absorption from abroad and why? Using these questions as motivation, this article surveys the recent trade literature on international technology transfer, paying particular attention to the role of foreign direct investment. The literature argues that trade necessarily encourages growth only if knowledge spillovers are international in scope. Empirical evidence on the scope of knowledge spillovers (national versus international) is ambiguous. Several recent empirical plant-level studies have questioned earlier studies that argued that foreign direct investment has a positive impact on the productivity of local firms. Yet at the aggregate level, evidence supports the view that foreign direct investment has a positive effect on economic growth in the host country.

Bibliographic Details

Main Author:	Saggi, Kamal
Format:	Journal Article biblioteca
Language:	English en_US
Published:	World Bank 2002-09-01
Subjects:	ABSTRACTS, ACCESSORIES, ARBITRAGE, ATTRIBUTES, AUTOMOBILE, AUTOMOBILES, BASIC, BERTRAND COMPETITION, BEST PRACTICES, BILATERAL INVESTMENT, BILATERAL INVESTMENT TREATIES, BUYERS, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL INVESTMENT, CLOSED ECONOMY, COLLABORATION, COMPARATIVE ADVANTAGE, COMPETITION LAW, COMPETITION POLICY, COMPUTER INDUSTRY, CONSUMERS, DOMESTIC FIRM, DOMESTIC FIRMS, DOMESTIC INVESTMENT, DOMESTIC SUPPLIERS, DUOPOLY, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC REFORM, ECONOMICS LITERATURE, ECONOMIES OF SCALE, ENDOGENOUS VARIABLES, ENGINEERING, ENGINEERS, EQUIPMENT, EXPORT PROMOTION, EXPORTS, EXTERNALITIES, FACTORS OF PRODUCTION, FDI, FIXED COST, FIXED COSTS, FOREIGN AFFILIATE, FOREIGN AFFILIATES, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN EXPORTERS, FOREIGN FIRM, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN MARKET, FOREIGN MARKETS, FOREIGN OWNERSHIP, FOREIGN PARTICIPATION, FOREIGN PRODUCERS, FOREIGN TECHNOLOGIES, FOREIGN TECHNOLOGY, FREE TRADE, GDP, GOVERNMENT POLICIES, GOVERNMENT POLICY, GROSS DOMESTIC PRODUCT, GROWTH MODELS, GROWTH RATE, GROWTH THEORY, HOST COUNTRIES, HOST COUNTRY, HOST ECONOMY, HUMAN CAPITAL, IMPERFECT COMPETITION, IMPORT SUBSTITUTION, INCOME LEVELS, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDUSTRIAL COUNTRIES, INDUSTRIAL COUNTRY, INDUSTRIAL DEVELOPMENT, INDUSTRIALIZATION, INFORMATION ACQUISITION, INNOVATIONS, INTANGIBLE ASSETS, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL BUSINESS, INTERNATIONAL TRADE, INVENTORS, INVESTMENT CLIMATE, INVESTMENT DECISIONS, INVESTMENT POLICIES, JOINT VENTURE, JOINT VENTURES, KNOW-HOW, LEARNING, LICENSE, LICENSE FEES, LITERACY, MANUFACTURING, MANUFACTURING FIRMS, MARGINAL COST, MARGINAL COSTS, MARGINAL PRODUCT, MARKET FAILURES, MARKET SIZE, MARKET STRUCTURE, MARKETING, MENU, MONOPOLY, NEOCLASSICAL MODELS, NEW TECHNOLOGIES, NEW TECHNOLOGY, OPEN ECONOMIES, OPEN ECONOMY, PATENTS, PER CAPITA INCOME, POLITICAL PROCESS, POSITIVE EXTERNALITIES, POSITIVE EXTERNALITY, PRODUCT DIFFERENTIATION, PRODUCTION FUNCTION, PRODUCTION PROCESS, PRODUCTION TECHNIQUES, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROFIT MAXIMIZATION, PROPERTY RIGHTS, PROPRIETARY KNOWLEDGE, PROTECTIONISM, PUBLIC GOOD, R&D, RESULT, RESULTS, SCALE EFFECTS, SEARCH, SEMICONDUCTOR, SEMICONDUCTOR INDUSTRY, SILICON, STORAGE FACILITIES, SUBSTITUTION EFFECT, SUNK COSTS, TECHNOLOGICAL CAPABILITY, TECHNOLOGICAL CHANGE, TECHNOLOGICAL INNOVATION, TECHNOLOGICAL SOPHISTICATION, TECHNOLOGY LICENSING, TECHNOLOGY SPILLOVERS, TECHNOLOGY TRANSFER, TECHNOLOGY TRANSFERS, TOTAL COSTS, TOTAL FACTOR PRODUCTIVITY, TRADE BARRIERS, TRADE POLICY, TRANSMISSION, TURNOVER RATES, USES, VERTICAL LINKAGES, WAGES, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2002/09/17591850/trade-foreign-direct-investment-international-technology-transfer-survey https://hdl.handle.net/10986/16417
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