International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis

Authors

Miao Wang, Marquette UniversityFollow
M. C. Sunny Wong, University of San FranciscoFollow

Document Type

Article

Language

eng

Format of Original

17 p.

Publication Date

10-2012

Publisher

Elsevier

Source Publication

World Development

Source ISSN

0305-750x

Original Item ID

doi: 10.1016/j.worlddev.2012.05.001

Abstract

We study the effect of foreign research and development (R&D) transferred through imports and foreign direct investment (FDI) on domestic technical efficiency using stochastic frontier analysis. Unbalanced panel results from a 77-country sample over 1986–2007 show that FDI- and imports-transferred foreign R&D have a significant impact on domestic country’s technical efficiency. Furthermore, we observe a complementarity between FDI-transferred R&D and domestic human capital. In other words, the domestic country needs to obtain a threshold level of human capital to benefit from FDI-transferred R&D. Other macro conditions such as infrastructure, political stability, and urbanization also help to improve the technical efficiency of a country.

Comments

Accepted version. World Development, Vol. 40, No. 10 (October 2012): 1982–1998. DOI. Published under Creative Commons license Attribution-NonCommercial-NoDerivatives 4.0 International.

Recommended Citation

Wang, Miao and Wong, M. C. Sunny, "International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis" (2012). Economics Faculty Research and Publications. 130.
https://epublications.marquette.edu/econ_fac/130