Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

Jürgen Bitzer () and Monika Kerekes
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Monika Kerekes: Free University Berlin Department of Economics & Institute for East European Studies

Macroeconomics from EconWPA

Abstract: Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.

Keywords: foreign direct investment; knowledge spillovers (search for similar items in EconPapers)
JEL-codes: F21 O33 O47 E23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-mac
Date: 2005-05-04
Note: Type of Document - pdf; pages: 25
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0505004

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