Country-of-origin effects on technology transfer in foreign direct investment
Document Type
Article
Publication Date
10-1-2024
Abstract
This study investigates the role of foreign direct investment (FDI) and its country-of-origin in technology transfer. Using data of 95 countries from 2008 to 2019, results indicate that net inflows of the FDI are positively related to technological transfer especially in developing countries. This is consistent with the findings that show fewer resources endowed countries benefited from advanced technologies and management know-how. Furthermore, results suggest different country-of-origin affects the technology transfer of the host economy differently. These results are consistent with studies that suggest the FDI origins are crucial to expose firms with variety of technologies and management practices. Results from quantile analysis prove that there is an existence of a threshold for the developed and developing countries to gain from the country-of-origin of the FDI. Therefore, we need to relook at the investment policies of the host countries to maximize the benefits from different sources of FDI.
Keywords
Foreign direct investment, country-of-origin, technology transfer, generalized method of moments, quantile analysis, F21, O14, E23
Divisions
financemanagement
Funders
Fundamental Research Grant Scheme (FRGS/1/2020/SS0/UM/02/8)
Publication Title
Journal of International Trade & Economic Development
Volume
33
Issue
7
Publisher
Taylor & Francis
Publisher Location
2-4 PARK SQUARE, MILTON PARK, ABINGDON OX14 4RN, OXON, ENGLAND