Publication: Technology Gap Matters on Spillover
dc.contributor.author | Sawada, Naotaka | |
dc.date.accessioned | 2012-03-30T07:30:22Z | |
dc.date.available | 2012-03-30T07:30:22Z | |
dc.date.issued | 2010 | |
dc.description.abstract | This paper develops an oligopoly model with endogenous technology spillovers through foreign direct investment (FDI). The foreign entrant brings a superior technology and therefore may spend resources to prevent spillovers of its technology to the home firm. The home firm has an incentive to spend resources to gain these spillovers. After firms strategically choose their expenditures to influence technology spillovers, they compete in a Cournot-Nash quantity game. This study provides theoretical insight on the positive and negative empirical spillover results of FDI on productivity of local firms. Up to a critical bound, the larger the initial technology gap between the foreign and home firms, the more the home firm spends to gain spillovers. Past that boundary, the home firm decreases spending. As a result, the home firm's profits from spillovers vary, but larger technology gaps engender greater net profit losses from FDI. | en |
dc.identifier.citation | Review of Development Economics | |
dc.identifier.issn | 13636669 | |
dc.identifier.uri | https://hdl.handle.net/10986/4917 | |
dc.language.iso | EN | |
dc.relation.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/igo | |
dc.rights.holder | World Bank | |
dc.subject | Noncooperative Games C720 | |
dc.subject | Multinational Firms | |
dc.subject | International Business F230 | |
dc.subject | Oligopoly and Other Imperfect Markets L130 | |
dc.subject | Technological Change: Choices and Consequences | |
dc.subject | Diffusion Processes O330 | |
dc.title | Technology Gap Matters on Spillover | en |
dc.title.alternative | Review of Development Economics | en |
dc.type | Journal Article | en |
dc.type | Article de journal | fr |
dc.type | ArtÃculo de revista | es |
dspace.entity.type | Publication | |
okr.doctype | Journal Article | |
okr.externalcontent | External Content | |
okr.identifier.externaldocumentum | 1530 | |
okr.journal.nbpages | 103-120 | |
okr.language.supported | en | |
okr.peerreview | Academic Peer Review | |
okr.relation.associatedurl | http://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1097832&site=ehost-live | |
okr.relation.associatedurl | http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 | |
okr.volume | 14 |