Publication:
Technology Gap Matters on Spillover

dc.contributor.authorSawada, Naotaka
dc.date.accessioned2012-03-30T07:30:22Z
dc.date.available2012-03-30T07:30:22Z
dc.date.issued2010
dc.description.abstractThis 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.citationReview of Development Economics
dc.identifier.issn13636669
dc.identifier.urihttps://hdl.handle.net/10986/4917
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectNoncooperative Games C720
dc.subjectMultinational Firms
dc.subjectInternational Business F230
dc.subjectOligopoly and Other Imperfect Markets L130
dc.subjectTechnological Change: Choices and Consequences
dc.subjectDiffusion Processes O330
dc.titleTechnology Gap Matters on Spilloveren
dc.title.alternativeReview of Development Economicsen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum1530
okr.journal.nbpages103-120
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1097832&site=ehost-live
okr.relation.associatedurlhttp://www.blackwellpublishing.com/journal.asp?ref=1363-6669
okr.volume14
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