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Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

  • Jürgen Bitzer

    (Free University Berlin Department of Economics & Institute for East European Studies)

  • Monika Kerekes

    (Free University Berlin Department of Economics & Institute for East European Studies)

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.

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File URL: http://econwpa.repec.org/eps/mac/papers/0505/0505004.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0505004.

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Length: 25 pages
Date of creation: 04 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0505004
Note: Type of Document - pdf; pages: 25
Contact details of provider: Web page: http://econwpa.repec.org

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