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Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

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  • Jürgen Bitzer

    (Free University Berlin Department of Economics & Institute for East European Studies)

  • Monika Kerekes

    (Free University Berlin Department of Economics & Institute for East European Studies)

Abstract

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.

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Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0505004.

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Length: 25 pages
Date of creation: 04 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0505004

Note: Type of Document - pdf; pages: 25
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Web page: http://128.118.178.162

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Keywords: foreign direct investment; knowledge spillovers;

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References

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Cited by:
  1. Claudio Bravo Ortega & Álvaro García Marín, 2008. "Exploring the Relationship Between R&D and Productivity: A Country-Level Study," Working Papers Central Bank of Chile 472, Central Bank of Chile.
  2. Bravo-Ortega, Claudio & García Marín, Álvaro, 2011. "R&D and Productivity: A Two Way Avenue?," World Development, Elsevier, vol. 39(7), pages 1090-1107, July.
  3. Johansson, Börje & Lööf, Hans, 2009. "The Global-Local Interplay of MNE and Non-MNE Firms," Working Paper Series in Economics and Institutions of Innovation 187, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  4. M Salehizadeh, 2005. "Foreign Direct Investment Inflows and the US Economy: An Empirical Analysis," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 29-50, September.

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