Technology transfer and spillovers: Does local participation with multinationals matter?1
This paper examines the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates. More specifically, we try to answer two questions, using unpublished Indonesian micro data. Firstly, do establishments with minority and majority ownership differ in terms of productivity levels? Secondly, does the degree of spillover differ with the degree of ownership in the FDI? Our results show that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers. However, the degree of foreign ownership does neither affect the level of labor productivity in foreign establishments, nor the degree of spillovers.
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- Sjoholm, Fredrik, 1999.
"Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment,"
Economic Development and Cultural Change,
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"Technology gap, competition and spillovers from direct foreign investment: Evidence from establishment data,"
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Taylor & Francis Journals, vol. 36(1), pages 53-73.
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- Ramachandran, Vijaya, 1993. "Technology Transfer, Firm Ownership, and Investment in Human Capital," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 664-70, November.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
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