Host Country Competition and Technology Transfer by Multinationals
This paper examines whether rivalry in host country markets may force multinational films to increase the technology transfer to their foreign affiliates. Such technology flows should be interesting from the perspective of the host country and its firms, since they would increase the potential for "spillovers". Using detailed (unpublished) industry data from Mexican manufacturing industry we find that indicators for local competition are positively related to the technology imports of foreign owned affiliates. The effects appear to be strong in consumer goods industries, which suggest that foreign multinationals are especially sensitive to the local market environment when barriers to entry in the form of complex technology or high capital requirements are relatively low.
|Date of creation:||Aug 1992|
|Date of revision:|
|Publication status:||published as Weltwirtschaftliches Archiv, Review of World Economics, Band 130, Heft 3pp. 521-533, (1994)|
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- Blomstrom, Magnus, 1986. "Foreign Investment and Productive Efficiency: The Case of Mexico," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 97-110, September.
- Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
- Mansfield, Edwin & Romeo, Anthony, 1980. "Technology Transfer to Overseas Subsidiaries by U.S.-Based Firms," The Quarterly Journal of Economics, MIT Press, vol. 95(4), pages 737-50, December.
- Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
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