Foreign investment and technology transfer

Wang, Jian‐Ye; Blomström, Magnus

doi:10.1016/0014-2921(92)90021-n

Cited by 589 publications

(367 citation statements)

References 16 publications

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“…Theoretical models by Glass and Saggi (1998), Wang andBlomström (1992), and others show that this may be the case. Empirical studies do not appear to have explicitly studied the effect of host-sector competition on knowledge spillovers from FDI.…”

Section: Competition In the Host Country Or Sectormentioning

confidence: 95%

“…Some researchers claim that technological backwardness should enhance knowledge spillovers, because the potential for improvement is large (Findlay 1978; Roger Smeets Wang and Blomström 1992). Others argue that firms need some minimum amount of absorptive capacity to be able to capture knowledge spillovers (Cohen andLevinthal 1989, 1990;Glass and Saggi 1998).…”

Section: Absorptive Capacity and Backwardnessmentioning

confidence: 99%

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Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Smeets¹

2008

The World Bank Research Observer

237

145

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Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies. JEL codes: F23, O33In the face of difficulties associated with capturing spillover effects and the multitude of factors that can influence the extent of spillovers in each economy, we caution researchers about drawing generalized conclusions about the existence of externalities associated with [foreign direct investment] . . . . (Javorcik and Spatareanu 2005, 47) Over the past decade or so a large body of research has examined knowledge spillovers from foreign direct investment (FDI). At several points along the way scholars have paused to take stock of the evidence (Blomström and Kokko 1998;Saggi 2002;Görg and Greenaway 2004). The verdict has largely been inconclusive. Indeed, the empirical inconclusiveness has become so infamous that virtually every study reviewed here begins with this observation as its main motivation. Explanations for the lack of conclusive results have focused on methodological and measurement issues (Görg and Strobl 2001), but this sort of approach has recently been disputed (Lipsey and Sjöholm 2005 The literature has developed in several directions to account for the ambiguity in earlier work. This study reviews these contributions, both theoretical and empirical. To provide some structure in a rapidly expanding field and to identify which approach or combination of approaches is likely to yield the most promising results, the study is structured around three themes. 1 More insight into the conditions under which knowledge spillovers from FDI are most likely to arise is especially important for developing countries. The highly ambiguous evidence to date on the existence of knowledge spillovers from FDI does not seem to warrant the large sums of money spent by governments to attract FDI. 2 After setting the stage in the following section, the article is then structured around figure 1, a representation of the FDI knowledge spillover process and the pieces of the puzzle that may affect it. 3 The section on opening the black box of FDI knowledge spillovers discusses the research on vertical linkages, worker mobility, and demonstration effects. This is followed by a review of the evidence o...

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Section: Competition In the Host Country Or Sectormentioning

confidence: 95%

Section: Absorptive Capacity and Backwardnessmentioning

confidence: 99%

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Smeets¹

2008

The World Bank Research Observer

237

145

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“…É o caso dos seguintes: a dimensão das empresas nacionais receptoras (Aitken e Harrison, 1999;Sinani e Meyer, 2004), o fato de as empresas nacionais serem ou não exportadoras (Blomström e Sjöholm, 1999;Ponomareva, 2000;Schoors e van der Tol, 2002), o país de origem do IDE (Haskel et al, 2002;Banga, 2003;Karpaty e Lundberg, 2004), o grau de participação externa nos projetos de investimento (Blomström e Sjöholm, 1999;Dimelis e Louri, 2002;Javorcik, 2004), o modo de entrada do IDE (Braconier et al, 2001), a política comercial adotada pelo país receptor (Kokko et al, 2001), a existência de direitos de propriedade intelectual, a dimensão da utilização de insumos intermédios por parte das empresas nacionais, o tipo de formação fornecido pelas EM aos seus trabalhadores (Fosfuri et al, 2001), as formas assumidas pelos contratos entre as empresas nacionais e as EM, o nível de concorrência (Wang;Blomström, 1992), o "valor" da tecnologia introduzida pelas EM (Blomström et al, 2000) ou a motivação do IDE (Fosfuri e Motta, 1999;Driffield e Love, 2002).…”

Section: Que Perspectivas Para a Investigação Sobre Externalidades Dounclassified

30 anos de investigação sobre externalidades do IDE para as empresas nacionais: que conclusões?

Crespo

Fontoura²

2007

Estud. Econ.

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“…Furthermore FDI creates the opportunities for new jobs, enhancement of transferring technology, and increase general economic growth of the host country. Günther (2002); Wang and Blomström (1992) categorize that there are four main channels of transferring technology from foreign firm to host firm which are, imitation the second one is competition the third one is skills and the last one is linkages. The first one the imitation is also called the learning by watching.…”

Section: Introductionmentioning

confidence: 99%

“…It happens when the local firm learns the technology and improves its knowledge by watching the technology used by the foreign firm. The existence of the foreign firm, this situation creates the atmosphere of competition, the other thing is that this that the local country's labor lean many things and technology by the foreign firm and it enhance their skills and the last channel is that by foreign firms it enhance the linkages from local to international market (De Mello & R, 1999;Jr., 1997;Wang & Blomström, 1992). Spillover effects are also caused by the FDI through these spillovers transferring of knowledge can be occurred.…”

Section: Introductionmentioning

confidence: 99%

Does Foreign Direct Investment Lead to Economic Growth? Evidences from Asian Developing Countries

Ali¹,

Mingque²

2018

IJEF

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The study about the interrelationship between FDI and economic growth in the host country is one of the hottest discussions. Some of the studies have evidence and consider FDI as the growth driver and some others don't. This study attempted to scrutinize the causal association of FDI with GDP in Indonesia, India, Malaysia and Bangladesh for the years of 1990 to 2014. Cointegration test has been applied in this study which shows that there is a long-term interrelationship within FDI and economic growth and then applied the Granger causality (GC) test which is based on the VECM. The short run results show that there are no evidence of causality direction from FDI to GDP and vice versa, whereas the long run results show that there is a positive impact of FDI and other variables to the GDP but not significant, and from GDP and other variables to FDI there is a negative interrelationship but significant. The results show the ambiguous interrelationship between FDI and economic growth.

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Foreign investment and technology transfer

Cited by 589 publications

References 16 publications

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

30 anos de investigação sobre externalidades do IDE para as empresas nacionais: que conclusões?

Does Foreign Direct Investment Lead to Economic Growth? Evidences from Asian Developing Countries

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