Technology Diffusion Towards Emerging Markets: A Comparative Panel Data Analysis

Abstract

This study aims to reveal how absorbable foreign direct investment (FDI) and macroeconomic performance affect technology diffusion along with patent applications, imports and human capital in 14 selected emerging markets (EMs) between 1980-2017. To do this, a new approach for indexing macroeconomic performance is suggested and a strongly balanced panel was investigated with two different econometric approaches. Key findings are as follows: (i) suggested macroeconomic performance index performs well under pooled mean group and dynamic common correlated effects estimations and proves the importance of macroeconomic outlook for developing countries, (ii) the positive effect of human capital on total factor productivity turns to negative when common factors are included in the estimation, meaning that international technology spillovers are a key source of productivity increases for developing countries.

Lock-In Effects on the Energy Sector: Evidence from Hydrogen Patenting Activities

“…Karaduman [17] examined the impact of technological innovation on emerging countries, finding a positive relationship between foreign direct investment, patent applications, and human capital, even though some others discovered a lower probability of success of the innovative entrepreneur due to restrictions of the rate of technical progress in the industry [18]. Blind and Jungmittag [19] analyzed the impact of patenting activities on macroeconomic growth in Europe and discovered a positive relationship between the two, highlighting the importance of patents in R&D-intensive industries.…”