Hidden Costs of Technology Transfer
AbstractGlobal operations of Giant Firms seem to restructure the division of production and income distribution on a global scale while increasing the interdependence of nations. In this process, the FDIs seem to be the principal mechanism linking national economies, in addition to trade. But, nevertheless, there is a disturbing gap in economic welfare between the few DCs and plenty LDCs. The rate of economic growth can, no doubt, be accelerated through the transfer of technology from the vast pool of technology accumulated in the developed countries. But, there is the belief that foreign investment "if left to the prevailing market forces, would accentuate rather than alleviate some aspects of under- development: it would aggravate the inequality of social and economic relations and increase external dependence." (UNCTAD,1972,p.1) The purpose of this study is to shed some light on the “adverse” impacts of transfer of commercial technology through FDIs to LDCs. Analysis will focus more on the “hidden” costs arising from the use of restrictive clauses contained in package deals. As will be seen, there are imperfect markets for technology transfer and the transactions in technology transfer often take the form of "package deals" accompanied by explicit written or implicit and unwritten contractual clauses.
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 EconWPA in its series General Economics and Teaching with number 0309003.
Length: 27 pages
Date of creation: 05 Sep 2003
Date of revision:
Note: Type of Document - Word; prepared on Exper PC ; to print on HP/; pages: 27 ; figures: included
Contact details of provider:
Web page: http://220.127.116.11
Technology transfer; restrictive clauses; hidden costs;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-09-08 (All new papers)
- NEP-IFN-2003-09-08 (International Finance)
- NEP-INO-2003-09-08 (Innovation)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.