IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v33y2001i5p625-642.html
   My bibliography  Save this article

Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: a stochastic frontier analysis

Author

Listed:
  • Vinish Kathuria

Abstract

This paper uses techniques from a stochastic production frontier (i.e., the best practice technology used in the industry vis-a-vis average practised technology) and panel data literature to test for the spillover hypothesis that 'presence of foreign-owned firms and disembodied technology import in a sector leads to higher productivity growth for domestic firms'. The study uses panel data for 368 medium and largesized Indian manufacturing firms for the period 1975-1976 to 1988-1989. The results indicate that there exists positive spillovers from the presence of foreign-owned firms but the nature and type of spillovers vary depending upon the industries to which the firms' belong. There exist significant positive spillovers for the domestic firms belonging to the 'scientific' subgroup provided the firms themselves possess significant R&D capabilities. However, for the 'non-scientific' subgroup presence of foreign firms itself forces the local firms to be more productive by inducing greater competition. However, the results change marginally when the initial level of productivity (i.e. the technology-gap) is considered.

Suggested Citation

  • Vinish Kathuria, 2001. "Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: a stochastic frontier analysis," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 625-642.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:625-642
    DOI: 10.1080/00036840121940
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121940
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840121940?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kathuria, Vinish, 1998. "Foreign Firms and Technology Transfer Knowledge Spillovers to Indian Manufacturing Firms," UNU-INTECH Discussion Paper Series 1998-04, United Nations University - INTECH.
    2. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    3. Aitken, Brian & Harrison, Ann & DEC, 1994. "Do domestic firms benefit from foreign direct investment? Evidence from panel data," Policy Research Working Paper Series 1248, The World Bank.
    4. Vinish Kathuria, 1998. "Technology Transfer and Spillovers for Indian Manufacturing Firms," Development Policy Review, Overseas Development Institute, vol. 16(1), pages 73-91, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ilo:ilowps:366690 is not listed on IDEAS
    2. Mohan Babu, G.N., 1999. "The Determinants of Firm-level Technological Performances - A Study on the Indian Capital Goods Sector," UNU-INTECH Discussion Paper Series 1999-01, United Nations University - INTECH.
    3. Mytelka, Lynn & Farinelli, Fulvia, 2000. "Local Clusters, Innovation Systems and Sustained Competitiveness," UNU-INTECH Discussion Paper Series 2000-05, United Nations University - INTECH.
    4. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, Stockholm School of Economics, The European Institute of Japanese Studies.
    5. Halis M. Yildiz, 2013. "Foreign direct investment and customs union: Incentives for multilateral tariff cooperation over free trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(2), pages 298-316, March.
    6. Ganeshan Wignaraja, 2002. "Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius," Oxford Development Studies, Taylor & Francis Journals, vol. 30(1), pages 87-104.
    7. Harpreet Dusanjh & A.S. Sidhu, 2009. "Multi-spillover Effects of Multinational Corporations on Host Countries," Global Business Review, International Management Institute, vol. 10(2), pages 243-260, July.
    8. Oyelaran-Oyeyinka, Banji & Adeya, Catherine Nyaki, 2002. "Internet Access in Africa: An Empirical Exploration," UNU-INTECH Discussion Paper Series 2002-05, United Nations University - INTECH.
    9. Anthony Bartzokas & Morris Teubal, 2002. "A Framework for Policy Oriented Innovation Studies in Industrialising Countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 477-496.
    10. Bastos, Maria-Ines & Steinmueller, Edward, 1995. "Information and Communication Technologies: Growth, Competitiveness, and Policy for Developing Nations," UNU-INTECH Discussion Paper Series 1995-11, United Nations University - INTECH.
    11. Ha-Joon Chang & Ali Cheema & L. Mises, 2002. "Conditions For Successful Technology Policy In Developing Countries—Learning Rents, State Structures, And Institutions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 369-398.
    12. Piva, Mariacristina., 2004. "The impact of technology transfer on employment and income distribution in developing countries : a survey of theoretical models and empirical studies," ILO Working Papers 993666903402676, International Labour Organization.
    13. Mani, Sunil, 2001. "Working with the Market: The Israeli Experience of Promoting R&D in the Enterprise Sector and the Lessons for Developing Countries," UNU-INTECH Discussion Paper Series 2001-09, United Nations University - INTECH.
    14. Mani, Sunil, 2001. "Government and Innovation Policy An Analysis of the South African Experience since 1994," UNU-INTECH Discussion Paper Series 2001-02, United Nations University - INTECH.
    15. Sunil Mani & Anthony Bartzokas, 2004. "Institutional support for investment in new technologies: the role of venture capital institutions in developing countries," Chapters, in: Anthony Bartzokas & Sunil Mani (ed.), Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 6, Edward Elgar Publishing.
    16. Mani, Sunil, 2001. "Role of Government in Promoting Innovation in the Enterprise Sector An Analysis of the Indian Experience," UNU-INTECH Discussion Paper Series 2001-03, United Nations University - INTECH.
    17. Clark, Norman, 2001. "Innovation Systems, Institutional Change and the New Knowledge Market: Implications for Third World Agricultural Development," UNU-INTECH Discussion Paper Series 2001-10, United Nations University - INTECH.
    18. Rasiah, Rajah, 2002. "TRIPs and Capability Building in Developing Economies," UNU-INTECH Discussion Paper Series 2002-01, United Nations University - INTECH.
    19. Kim, Linsu, 2000. "The Dynamics of Technological Learning in Industrialisation," UNU-INTECH Discussion Paper Series 2000-07, United Nations University - INTECH.
    20. Oyelaran-Oyeyinka, Banji, 2001. "Networks and Linkages in African Manufacturing Cluster: A Nigerian Case Study," UNU-INTECH Discussion Paper Series 2001-05, United Nations University - INTECH.
    21. Paul Missios & Halis Murat Yildiz & Ida Ferrara, 2009. "Foreign Direct Investment and the Choice of Environmental Policy," Working Papers 004, Ryerson University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:33:y:2001:i:5:p:625-642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.