Country-of-origin effects on technology transfer in foreign direct investment

Chan, Sok-Gee and Har, Wai-Mun and Kanapathy, Kanagi and Celik, Saban and Aktan, Bora (2024) Country-of-origin effects on technology transfer in foreign direct investment. Journal of International Trade & Economic Development, 33 (7). pp. 1345-1370. ISSN 0963-8199, DOI https://doi.org/10.1080/09638199.2023.2262615.

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Official URL: https://doi.org/10.1080/09638199.2023.2262615

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.

Item Type: Article
Funders: Fundamental Research Grant Scheme (FRGS/1/2020/SS0/UM/02/8)
Uncontrolled Keywords: Foreign direct investment; country-of-origin; technology transfer; generalized method of moments; quantile analysis; F21; O14; E23
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Business and Economics > Department of Management
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 31 Dec 2024 07:01
Last Modified: 31 Dec 2024 07:01
URI: http://eprints.um.edu.my/id/eprint/47148

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