Host country factors and inward FDI-induced technology transfer: the case of the UAE

Abstract

The purpose of this study was to investigate the host country factors that impact the transfer of technology arising from Foreign Direct Investment for a resource-rich nation such as the United Arab Emirates. Design/methodology/approach: Consistent with prior literature, a labour productivity model that isolates the effects of increased capital intensity has been developed to proxy for the presence of technology transfer. Using an OLS model, the dependent variables were the stock of FDI, imitation, labour mobility, trade openness, absorption capacity, economic development, competition and institutional development. The model was estimated using data for the period 1980 to 2010.