International Technology Diffusion: Effects of Trade and FDI | Zendy

Alejandro Ciruelos | Zendy; Miao Wang | Zendy

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International Technology Diffusion: Effects of Trade and FDI

Author(s) -

Alejandro Ciruelos,

Miao Wang

Publication year - 2005

Publication title -

atlantic economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.216

H-Index - 23

eISSN - 1573-9678

pISSN - 0197-4254

DOI - 10.1007/s11293-005-2871-1

Subject(s) - foreign direct investment , international economics , economics , international trade , diffusion , developing country , human capital , production (economics) , core (optical fiber) , macroeconomics , economic growth , physics , materials science , composite material , thermodynamics

There has been little analysis of the effect of inward FDI on international R&D diffusion, especially in LDCs, although FDI has become the core of international production and LDCs have been receiving an increasing share of world FDI over the past few decades. Using data from 57 countries from 1988 to 2001, we find that both FDI and trade serve as important channels of international technology diffusion. However, there exist heterogeneous effects of FDI in DCs and LDCs. For inward FDI to promote technology diffusion in LDCs, a certain threshold of human capital has to be reached. Copyright International Atlantic Economic Society 2005D24, F10, F21,

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