International Technology Diffusion: Effects of Trade and FDI

Authors

Alejandro Ciruelos, Diamondcluster International
Miao Wang, Marquette UniversityFollow

Document Type

Article

Language

eng

Format of Original

13 p.

Publication Date

12-2005

Publisher

Springer

Source Publication

Atlantic Economic Journal

Source ISSN

0197-4254

Abstract

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.

Comments

Accepted version.Atlantic Economic Journal, Vol. 33, No. 4 (December 2005): 437-449. DOI.© Springer Verlag 2005. Used with permission.

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Recommended Citation

Ciruelos, Alejandro and Wang, Miao, "International Technology Diffusion: Effects of Trade and FDI" (2005). Economics Faculty Research and Publications. 59.
https://epublications.marquette.edu/econ_fac/59