International Trade, Foreign Direct Investment, and Technology Spillovers

Wolfgang Keller

No 7503, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper examines how international flows of technological knowledge affect economic performance across industries and firms in different countries. Motivated by the large share of the world's technology investments made by firms that are active across borders, we focus on international trade and multinational enterprise activity as conduits for technological externalities, or spillovers. In addition to reviewing the recent empirical research on technology spillovers, the discussion is guided by a new model of foreign direct investment, trade, and endogenous technology transfer. We find evidence for technology spillovers through international trade and the activity of multinational enterprises. The analysis also highlights challenges for future empirical research, as well as the need for additional data on technology and innovation.

Keywords: Intra-firm trade; Learning-by-exporting; Multinational firms; Tacit knowledge; Technological externalities; Technology diffusion; Total factor productivity (search for similar items in EconPapers)
JEL-codes: F1 F2 O3 O4 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-cse, nep-eff, nep-int and nep-sbm
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Citations: View citations in EconPapers (76)

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Related works:
Chapter: International Trade, Foreign Direct Investment, and Technology Spillovers (2010)
Working Paper: International Trade, Foreign Direct Investment, and Technology Spillovers (2009)
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