The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry
AbstractForeign direct investment (FDI) and research & development (R&D) are mutually dependent and should be treated as endogenous variables in empirical studies. An endogenous switching regression model is used to examine the mutual effect of FDI and R&D in Taiwan's electronics industry. The empirical results show that FDI and R&D are positively related and do reinforce each other. Unbiased coefficients are obtained as they are compared to those estimates if FDI and R&D are treated as exogenous variables. The results have a strong public policy implication for Taiwan's foreign direct investment and can be further used to estimate the difference in R&D expenditures between FDI and non-FDI firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 37 (2005)
Issue (Month): 15 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chen, Tain-Jy, 1992. "Determinants of Taiwan's direct foreign investment : The case of a newly industrializing country," Journal of Development Economics, Elsevier, vol. 39(2), pages 397-407, October.
- Catherine Co & John List, 2004. "Is foreign direct investment attracted to 'knowledge creators'?," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1143-1149.
- Robert E. Lipsey, 1995.
"Outward Direct Investment and the U.S. Economy,"
in: The Effects of Taxation on Multinational Corporations, pages 7-42
National Bureau of Economic Research, Inc.
- John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 45-66, March.
- Ana Teresa Tavares & Aurora A.C. Teixeira, 2006. "Is Human Capital a Significant Determinant of Portugal’s FDI Attractiveness?," FEP Working Papers 211, Universidade do Porto, Faculdade de Economia do Porto.
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2010.
"Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents,"
KIER Working Papers
721, Kyoto University, Institute of Economic Research.
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2013. "Globalization and knowledge spillover: international direct investment, exports and patents," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(4), pages 329-352, June.
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2012. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Documentos del Instituto Complutense de AnÃ¡lisis EconÃ³mico 2012-16, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
- Chang, C-L. & Chang, S.P. & McAleer, M.J., 2010. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Econometric Institute Research Papers EI 2010-55, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2010. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Working Papers in Economics 10/54, University of Canterbury, Department of Economics and Finance.
- Burcu Türkcan & A. Aysen Kaya, 2011. "Internationalization of Research and Development Activities: Case of European Countries And Turkey," Working Papers 1101, Ege University, Department of Economics.
- Huang, Shu-Chin, 2013. "Capital outflow and R&D investment in the parent firm," Research Policy, Elsevier, vol. 42(1), pages 245-260.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.