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International Technology Diffusion: Effects of Trade and FDI

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  • Alejandro Ciruelos
  • Miao Wang

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. Copyright International Atlantic Economic Society 2005

Suggested Citation

  • Alejandro Ciruelos & Miao Wang, 2005. "International Technology Diffusion: Effects of Trade and FDI," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 437-449, December.
    • Handle: RePEc:kap:atlecj:v:33:y:2005:i:4:p:437-449
    DOI: 10.1007/s11293-005-2871-1
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    References listed on IDEAS

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    More about this item

    Keywords

    D24; F10; F21;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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