Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus

Bodman, Philip; Le, Thanh

doi:10.1080/00036846.2011.613789

Cited by 77 publications

(57 citation statements)

References 25 publications

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“…across borders since the inflow of FDI contains knowledge about new technologies and materials, production methods, or organizational management skills (Bodman and Le 2013). Bodman and Le (2013) studied the impact of technology embodied in FDI on the total factor productivity (TFP) of FDI-receiving countries, shedding new light on where the sources of research and development (R&D) spillovers lie and directly addressing the important question of whether more FDI leads to a better trained labor force.…”

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confidence: 99%

Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector

2016

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Foreign firms in Kenya have played a major role in enhancing economic growth in the agriculture sector, especially in floriculture and horticulture. Over a long period of time, foreign direct investment (FDI) has been found to create many externalities in the Kenyan economy in the form of benefits available through transfers of general knowledge, specific technologies in production and distribution, industrial upgrading, work experience for the labor force and the establishment of finance-related and trading networks, and the upgrading of telecommunications services. The purpose of this study was to address the role of foreign direct investment on technology transfer and economic growth in Kenya, with a focus on the energy sector in Nairobi focusing on the period between 2001 and 2014. This study adopted a descriptive and inferential survey design. The target population for this study was 60 senior managers composing of directors and managers from Kenya Power and Kengen. Questionnaires were used to collect primary data. The study established that there is a relationship between foreign direct investment variables of infrastructure, technology diffusion, trade facilitation, knowledge management, and technology transfer and economic growth. The study found that investment in the energy sector has led to new technology in the country as it has transferred technology to local investors through sharing of knowledge in new innovation in production, research, and development and also has led to increased competition in trading which has resulted in efficiency and effectiveness of the industry. A major implication of this study is that policy makers must devise policies that would create an enabling environment for attracting FDIs in order to facilitate technology transfer and hence economic growth.

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confidence: 99%

Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector

2016

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“…[19] Find that technology diffusion from US foreign affiliates has a positive and significant impact on labor productivity only if host countries have a minimum level of human development. [20] Find that FDI is an effective channel of technological transfer across borders. Also, the analysis uses a novel approach to take into account the possibility that physical distances can act as a barrier to economic and technological interactions amongst countries, by embedding a measure of geographical distance into two specific channels: international trade and FDI.…”

Section: B Empirical Workmentioning

confidence: 99%

The Role of Foreign Presence in the Technology Transfer

Naanaa¹,

Sellaouti²

2013

IJTEF

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Abstract-Many empirical studies have shown that a large part of the growth productivity is realized through foreign technology, so the objective of this paper is to test the role of foreign presence in the technology transfer through the analysis of its impact on productivity for Tunisian manufactory sector-based over the period 1990-2012. To this end, econometric equations that relate the total factor productivity (TFP), with foreign direct investment (FDI) that reflects technological spillovers will be tested. However, we use the generalized method of moments to determine the TFP.Index Terms-Diffusion of technology, foreign direct investment (FDI), productivity.

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“…Generally, whether foreign firms could generate positive spill-over effects to domestic sectors differs amongst nations and nations. It is subject to absorptive capacity of host countries and domestic organizations (Bodman & Le 2013;Ferragina & Mazzotta 2014;Sanchez-Sellero et al 2014;Tang & Zhang 2015;Blomström & Sjöholm 1999). Therefore, absorptive capacity needs taking into consideration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Some studies find positive effect of FDI spill-overs (Haddad & Harrison 1993;Suyanto et al 2012;Javorcik 2004) while some show reverse findings (Aitken & Harrison 1999;Le & Pomfret 2008). To some extent, however it is a consensus that the effect of FDI spill-overs on host countries varies, depending on absorptive capacity of recipients (Bodman & Le 2013;Tang & Zhang 2015;Blomström & Sjöholm 1999;Liu et al 2016). Absorptive capacity is firstly defined by Cohen and Levinthal in 1989 and exploited in the consecutive studies.…”

Section: Introductionmentioning

confidence: 99%

FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

Duong¹,

Le²

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

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VU HOANG DUONG, LE VAN HUNG. 2017 This study empirically examines relationship between FDI spill-overs and technical efficiency of domestic firms and role of the absorptive capacity of domestic firms. Data on Vietnamese Annual Enterprises Survey are exploited to build a firm-level panel data on the Vietnamese wearing apparel industry from 2009 to 2013. By applying stochastic production frontier model, this paper shows that there are positive vertical spill-over effects but no horizontal effects. Moreover, this study finds the negative impact of the absorptive capacity of domestic firms on benefits reaped from FDI externalities.

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Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus

Cited by 77 publications

References 25 publications

Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector

Role of foreign direct investment on technology transfer and economic growth in Kenya: a case of the energy sector

The Role of Foreign Presence in the Technology Transfer

FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

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