Foreign Ownership, Technological Capabilities and Exports: Evidence from 205 Clothing Firms in Sri Lanka
AbstractSri Lanka was the earliest South Asian economy to introduce economic reforms to attract export-oriented FDI. The rise of clothing production for export, apparently mainly driven by foreign firms, is regarded as a major outcome of the reforms. This paper seeks to examine a range of factors underlying firm-level export and technological performance. Econometric analysis (based on a large dataset of 205 clothing enterprises) indicates that foreign ownership, firm size, human capital, technological capabilities and geographical location are all positively associated with export shares. Furthermore, higher levels of technological capability are associated with larger firm size, university-level manpower and formal research and development. Improving the country's investment climate, facilitating the development of business services markets and upgrading SMEs as subcontractors to foreign firms are important policy lessons for developing economies
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 InfoPaper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 032.
Date of creation: 2006
Date of revision:
Contact details of provider:
Web page: http://www.merit.unu.edu
Sri Lanka; Clothing Industry; Multinational Firms; Foreign Direct Investment; Government Policy; Technological Change;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
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.:
- Rasiah, Rajah, 2003. "Foreign ownership, technology and electronics exports from Malaysia and Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 785-811, October.
- Kelegama, Saman & Foley, Fritz, 1999. "Impediments to Promoting Backward Linkages from the Garment Industry in Sri Lanka," World Development, Elsevier, vol. 27(8), pages 1445-1460, August.
- Wignaraja, Ganeshan, 2001.
"Firm Size, Technological Capabilities and Market-Oriented Policies in Mauritius,"
1, United Nations University, Institute for New Technologies.
- Ganeshan Wignaraja, 2002. "Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius," Oxford Development Studies, Taylor and Francis Journals, vol. 30(1), pages 87-104.
- Levy, Brian, 1993. "Obstacles to Developing Indigenous Small and Medium Enterprises: An Empirical Assessment," World Bank Economic Review, World Bank Group, vol. 7(1), pages 65-83, January.
- Sanjaya Lall, 1986. "Technological development and export performance in LDCs: Leading engineering and chemical firms in India," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 122(1), pages 80-92, March.
- Sonali Deraniyagala, 2001. "The Impact of Technology Accumulation on Technical Efficiency: An Analysis of the Sri Lankan Clothing and Agricultural Machinery Industries," Oxford Development Studies, Taylor and Francis Journals, vol. 29(1), pages 101-114.
- Hege M. Knutsen, 2004. "Industrial development in buyer-driven networks: the garment industry in Vietnam and Sri Lanka," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 545-564, November.
- White, Howard & Wignaraja, Ganeshan, 1992. "Exchange rates, trade liberalization and aid: The Sri Lankan experience," World Development, Elsevier, vol. 20(10), pages 1471-1480, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).
If references are entirely missing, you can add them using this form.