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

dc.contributor.author Saggi, Kamal
dc.date.accessioned 2014-08-28T18:57:23Z
dc.date.available 2014-08-28T18:57:23Z
dc.date.issued 2000-05
dc.description.abstract The 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.identifier http://documents.worldbank.org/curated/en/2000/05/437640/trade-foreign-direct-investment-international-technology-transfer-survey
dc.identifier.uri http://hdl.handle.net/10986/19843
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 2349
dc.rights CC BY 3.0 IGO
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ABSORPTIVE CAPACITY
dc.subject ARBITRAGE
dc.subject ASYMMETRIC INFORMATION
dc.subject BRAIN DRAIN
dc.subject CAPITAL ACCUMULATION
dc.subject CLOSED ECONOMY
dc.subject COLLABORATION
dc.subject COMPARATIVE ADVANTAGE
dc.subject CONSUMERS
dc.subject DECISION MAKING
dc.subject DEVELOPED COUNTRIES
dc.subject DUOPOLY
dc.subject ECONOMIC ACTIVITY
dc.subject ECONOMIC GROWTH
dc.subject ECONOMICS LITERATURE
dc.subject ECONOMISTS
dc.subject EMPIRICAL ANALYSIS
dc.subject EMPIRICAL EVIDENCE
dc.subject EMPIRICAL STUDIES
dc.subject EXPORTERS
dc.subject EXPORTS
dc.subject EXTERNALITIES
dc.subject EXTERNALITY
dc.subject FACTOR ENDOWMENTS
dc.subject FACTORS OF PRODUCTION
dc.subject FINAL GOODS
dc.subject FOREIGN DIRECT INVESTMENT
dc.subject FOREIGN FIRM
dc.subject FOREIGN FIRMS
dc.subject FOREIGN LABOR
dc.subject FOREIGN MARKET
dc.subject FOREIGN MARKETS
dc.subject FREE TRADE
dc.subject GROWTH MODELS
dc.subject GROWTH THEORY
dc.subject HIGH TECHNOLOGY
dc.subject HIGH TECHNOLOGY INDUSTRIES
dc.subject HUMAN CAPITAL
dc.subject IMPERFECT COMPETITION
dc.subject INCOME
dc.subject INCOME LEVELS
dc.subject INDUSTRY TRADE
dc.subject INTERMEDIATE GOODS
dc.subject INTERNATIONAL TECHNOLOGY TRANSFER
dc.subject INTERNATIONAL TRADE
dc.subject INVENTORS
dc.subject KNOW-HOW
dc.subject KNOWLEDGE SPILLOVERS
dc.subject LABOR FORCE
dc.subject LABOR MARKETS
dc.subject LABOR PRODUCTIVITY
dc.subject LEARNING
dc.subject LITERACY
dc.subject MARGINAL COST
dc.subject MARGINAL PRODUCT
dc.subject MARKET FAILURES
dc.subject MODEM
dc.subject MULTINATIONAL FIRMS
dc.subject NEOCLASSICAL MODELS
dc.subject NEW PRODUCTS
dc.subject NEW TECHNOLOGIES
dc.subject OPEN ECONOMIES
dc.subject OPENNESS
dc.subject OPTION VALUE
dc.subject OUTSOURCING
dc.subject PER CAPITA INCOME
dc.subject PRODUCERS
dc.subject PRODUCT DIFFERENTIATION
dc.subject PRODUCTION FUNCTION
dc.subject PRODUCTION TECHNIQUES
dc.subject PRODUCTION TECHNOLOGY
dc.subject PRODUCTIVITY
dc.subject PRODUCTIVITY GROWTH
dc.subject PROPERTY RIGHTS
dc.subject PROTECTIONISM
dc.subject PUBLIC GOOD
dc.subject SCALE EFFECTS
dc.subject SUBSTITUTION EFFECT
dc.subject SUNK COSTS
dc.subject TECHNOLOGICAL CHANGE
dc.subject TECHNOLOGY ADOPTION
dc.subject TECHNOLOGY DIFFUSION
dc.subject TECHNOLOGY TRANSFER
dc.subject TECHNOLOGY TRANSFERS
dc.subject THEORETICAL MODELS
dc.subject TOTAL COSTS
dc.subject TRADE BARRIERS
dc.subject TRADE MODELS
dc.subject TRADE POLICY
dc.subject TRADE PROTECTION
dc.subject TRADE RESTRICTIONS
dc.subject TRANSFER OF TECHNOLOGY
dc.title Trade, Foreign Direct Investment, and International Technology Transfer : A Survey en
dspace.entity.type Publication
okr.date.disclosure 2000-05-31
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2000/05/437640/trade-foreign-direct-investment-international-technology-transfer-survey
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Transport and ICT
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-2349
okr.identifier.externaldocumentum 000094946_00061706080972
okr.identifier.internaldocumentum 437640
okr.identifier.report WPS2349
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/06/17/000094946_00061706080972/Rendered/PDF/multi_page.pdf en
okr.relation.associatedurl https://openknowledge.worldbank.org/handle/10986/16417
okr.theme Trade and integration :: International financial architecture
okr.theme Trade and integration :: Technology diffusion
okr.theme Trade and integration :: Other trade and integration
okr.topic Information and Communication Technologies :: ICT Policy and Strategies
okr.topic General Technology
okr.topic International Economics and Trade :: Free Trade
okr.topic Economic Theory and Research
okr.topic Macroeconomics and Economic Growth :: Knowledge Economy
okr.topic Environmental Economics and Policies
okr.unit Trade, Development Research Group
okr.volume 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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