Technology Sourcing and Strategic Foreign Direct Investment
Empirical evidence suggests that there are important spillovers as-sociated with the operations of multinational enterprises. Spillovers may occur when less advanced, local firms learn from their more ad-vanced, foreign competitors. But less advanced firms may also actively seek knowledge by investing abroad, so-called "technology sourcing" FDI. The present paper focuses on entry strategies in the presence of technological differences and spillovers.
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