Outward foreign direct investment and domestic innovation efforts: Evidence from India

Reddy, Ketan; Sasidharan, Subash; Doytch, Nadia

doi:10.1016/j.jeconbus.2022.106084

Cited by 10 publications

(1 citation statement)

References 59 publications

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“…Foreign direct investment has been essential for business expansions and cross-border knowledge flows, mainly in developing countries during the last three decades. FDI from developing countries substantially impacts technological innovation, improving organizational and managerial skills and stimulating domestic investment [1]. On the other hand, due to globalization, multinational companies face intense competition to increase their global trade share through market competitiveness.…”

Section: Introductionmentioning

confidence: 99%

Does FDI foster technological innovations? Empirical evidence from BRICS economies

et al. 2023

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The idea behind the spillover effect of FDI on economic growth is based on the idea that multinational companies can bring technological innovation and rich knowledge to host countries. Therefore, FDI plays a vital role in technological innovations. This study aims to investigate the impact of foreign direct investment (FDI) on the technological innovation of BRICS countries from 2000 to 2020. This study uses the latest econometric techniques, such as the cross-sectional dependence (CD) test, second-generation unit root tests, panel cointegration tests and the Dumitrescu-Hurlin causality test. For long-run run estimation, this study uses the augmented mean group (AMG) panel estimator and the common correlated effects mean group (CCEMG) estimator for empirical analysis. The findings of the study show that foreign direct investment (FDI), trade openness, economic growth, and research & development expenditure positively impact technological innovation in BRICS countries. Also, the model’s long-term causality and lagged error correction term (ECT) are significantly negative. Suggested policy measures will be helpful for BRICS economies in boosting technology innovation through FDI.

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Section: Introductionmentioning

confidence: 99%