Publication:
Trade, Foreign Direct Investment, and International Technology Transfer : A Survey

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dc.contributor.authorSaggi, Kamal
dc.date.accessioned2014-08-28T18:57:23Z
dc.date.available2014-08-28T18:57:23Z
dc.date.issued2000-05
dc.description.abstractThe author surveys the literature on trade and foreign direct investment--especially wholly-owned subsidiaries of multinational firms and international joint ventures--as channels for technology transfer. He also discusses licensing and other arm's length channels of technology transfer. He concludes: 1) How trade encourages growth depends on whether knowledge spillover is national or international. Spillover is more likely to be national for developing countries than for industrial countries. 2) Local policy often makes pure foreign direct investment infeasible, so foreign firms choose licensing or joint ventures. The jury is still out on whether licensing or joint ventures lead to more learning by local firms. 3) Policies designed to attract foreign direct investment are proliferating. Several plant-level studies have failed to find positive spillover from foreign direct investment to firms competing directly with subsidiaries of multinationals. (However, these studies treat foreign direct investment as exogenous and assume spillover to be horizontal-when it may be vertical.) All such studies do find the subsidiaries of multinationals to be more productive than domestic firms, so foreign direct investment does result in host countries using resources more effectively. 4) Absorptive capacity in the host country is essential for getting significant benefits from foreign direct investment. Without adequate human capital or investments in research and development, spillover fails to materialize. 5) A country's policy on protection of intellectual property rights affects the type of industry it attracts. Firms for which such rights are crucial (such as pharmaceutical firms) are unlikely to invest directly in countries where such protections are weak, or will not invest in manufacturing and research and development activities. Policy on intellectual property rights also influences whether technology transfer comes through licensing, joint ventures, or the establishment of wholly-owned subsidiaries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/05/437640/trade-foreign-direct-investment-international-technology-transfer-survey
dc.identifier.doi10.1596/1813-9450-2349
dc.identifier.urihttps://hdl.handle.net/10986/19843
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2349
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSORPTIVE CAPACITY
dc.subjectARBITRAGE
dc.subjectASYMMETRIC INFORMATION
dc.subjectBRAIN DRAIN
dc.subjectCAPITAL ACCUMULATION
dc.subjectCLOSED ECONOMY
dc.subjectCOLLABORATION
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSUMERS
dc.subjectDECISION MAKING
dc.subjectDEVELOPED COUNTRIES
dc.subjectDUOPOLY
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMICS LITERATURE
dc.subjectECONOMISTS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectEXTERNALITY
dc.subjectFACTOR ENDOWMENTS
dc.subjectFACTORS OF PRODUCTION
dc.subjectFINAL GOODS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FIRM
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN LABOR
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN MARKETS
dc.subjectFREE TRADE
dc.subjectGROWTH MODELS
dc.subjectGROWTH THEORY
dc.subjectHIGH TECHNOLOGY
dc.subjectHIGH TECHNOLOGY INDUSTRIES
dc.subjectHUMAN CAPITAL
dc.subjectIMPERFECT COMPETITION
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINDUSTRY TRADE
dc.subjectINTERMEDIATE GOODS
dc.subjectINTERNATIONAL TECHNOLOGY TRANSFER
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORS
dc.subjectKNOW-HOW
dc.subjectKNOWLEDGE SPILLOVERS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKETS
dc.subjectLABOR PRODUCTIVITY
dc.subjectLEARNING
dc.subjectLITERACY
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCT
dc.subjectMARKET FAILURES
dc.subjectMODEM
dc.subjectMULTINATIONAL FIRMS
dc.subjectNEOCLASSICAL MODELS
dc.subjectNEW PRODUCTS
dc.subjectNEW TECHNOLOGIES
dc.subjectOPEN ECONOMIES
dc.subjectOPENNESS
dc.subjectOPTION VALUE
dc.subjectOUTSOURCING
dc.subjectPER CAPITA INCOME
dc.subjectPRODUCERS
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION TECHNIQUES
dc.subjectPRODUCTION TECHNOLOGY
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROPERTY RIGHTS
dc.subjectPROTECTIONISM
dc.subjectPUBLIC GOOD
dc.subjectSCALE EFFECTS
dc.subjectSUBSTITUTION EFFECT
dc.subjectSUNK COSTS
dc.subjectTECHNOLOGICAL CHANGE
dc.subjectTECHNOLOGY ADOPTION
dc.subjectTECHNOLOGY DIFFUSION
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTECHNOLOGY TRANSFERS
dc.subjectTHEORETICAL MODELS
dc.subjectTOTAL COSTS
dc.subjectTRADE BARRIERS
dc.subjectTRADE MODELS
dc.subjectTRADE POLICY
dc.subjectTRADE PROTECTION
dc.subjectTRADE RESTRICTIONS
dc.subjectTRANSFER OF TECHNOLOGY
dc.titleTrade, Foreign Direct Investment, and International Technology Transfer : A Surveyen
dspace.entity.typePublication
okr.crossref.titleTrade, Foreign Direct Investment, and International Technology Transfer: A Survey
okr.date.disclosure2000-05-31
okr.date.doiregistration2025-04-10T09:44:29.707757Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/05/437640/trade-foreign-direct-investment-international-technology-transfer-survey
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid300711468766538210
okr.identifier.doi10.1596/1813-9450-2349
okr.identifier.externaldocumentum000094946_00061706080972
okr.identifier.internaldocumentum437640
okr.identifier.reportWPS2349
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/06/17/000094946_00061706080972/Rendered/PDF/multi_page.pdfen
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/16417
okr.themeTrade and integration :: International financial architecture
okr.themeTrade and integration :: Technology diffusion
okr.themeTrade and integration :: Other trade and integration
okr.topicInformation and Communication Technologies::ICT Policy and Strategies
okr.topicGeneral Technology
okr.topicInternational Economics and Trade::Free Trade
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Knowledge Economy
okr.topicEnvironmental Economics and Policies
okr.unitTrade, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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