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Country risk and the international flows of technology: evidence from the chemical industry

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  • Fosfuri, Andrea

Abstract

We empirically investigate the relationship between country risk and the international flows of technology. Using a comprehensive database on investments in chemical plants during the period 1981- 1991, we show that higher levels of country risk are associated with fewer technology transfers to recipient economies. This holds true both for wholly owned operations and for more market-based transactions. The analysis also suggests that technology transfers with smaller resource commitment tend to be preferred in country with higher levels of risk. Hence, higher country risk not only does it reduce the amount of wholly owned investment, it also contributes to shift from this type of technology transfer to more market-mediated means, such as licensing. After controlling for several country characteristics, we do not find intellectual property rights protection playing a significant role in fostering technology transfers or conditioning the transfer mode.

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  • Fosfuri, Andrea, 2002. "Country risk and the international flows of technology: evidence from the chemical industry," DEE - Working Papers. Business Economics. WB wb022514, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:wb022514
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    Cited by:

    1. Sunil Kanwar, 2010. "Intellectual Property Protection and the Licensing of Technology to Developing Countries," Working papers 188, Centre for Development Economics, Delhi School of Economics.
    2. Fosfuri, Andrea, 2004. "Determinants of international activity: evidence from the chemical processing industry," Research Policy, Elsevier, vol. 33(10), pages 1599-1614, December.
    3. Sunil Kanwar & Stefan Sperlich, 2020. "Innovation, productivity and intellectual property reform in an emerging market economy: evidence from India," Empirical Economics, Springer, vol. 59(2), pages 933-950, August.
    4. Sunil Kanwar, 2012. "Intellectual Property Protection and Technology Licensing: The Case of Developing Countries," Journal of Law and Economics, University of Chicago Press, vol. 55(3), pages 539-564.
    5. Sunil Kanwar, 2013. "Innovation, Efficiency, Productivity and Intellectual Property Rights: Evidence from a BRIC Economy," Working Papers id:5375, eSocialSciences.
    6. Sunil Kanwar, 2013. "Innovation, Productivity and IPRs," Working papers 230, Centre for Development Economics, Delhi School of Economics.
    7. Deeparghya Mukherjee, 2015. "TRIPS and the Balance between Private Rights and Public Well-being," Foreign Trade Review, , vol. 50(4), pages 284-297, November.

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