A Note on Multinational Corporations and Technology Transfer Agreements

Mir Mahmood
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Mir Mahmood: PIDE

The Pakistan Development Review, 1978, vol. 17, issue 3, 355-364

Abstract: Multinational corporations are responsible for much of the technology transfer that occurs between the developed and developing countries. Consequently, these corporations play an important role in economic development by supplying technical skills, managerial know-how and capital. However, this transfer of technology is not a costless process: these corporations remit money in the form of royalties, technical fees, and profits from the less developed countries. For undivided Pakistan, between 1965-1970 payments for royalties and technical fees averaged $102 million per year [2, p.126J. If other costs, for example, profit repatriation and over-pricing of intermediate inputs, are included the figure would have been much higher.

Date: 1978
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