The Role of Technological Transfer in Amplifying Foreign Direct Investment’s Impact on Economic Growth in Developing Countries

Hafizah Hammad Ahmad Khan (), Rosmaiza Abdul Ghani, Muhammad Hanif Othman, Handri Handri and Azib Azib
Additional contact information
Hafizah Hammad Ahmad Khan: Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Faculty of Business and Management
Rosmaiza Abdul Ghani: Universiti Teknologi MARA, Kampus Alor Gajah, Faculty of Business and Management
Muhammad Hanif Othman: Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Faculty of Business and Management
Handri Handri: Universitas Islam Bandung, Faculty of Economics and Business
Azib Azib: Universitas Islam Bandung, Faculty of Economics and Business

A chapter in Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024), 2025, pp 120-129 from Springer

Abstract: Abstract Foreign direct investment (FDI) is widely recognized as a pivotal driver for economic growth primarily due to its role in facilitating technological transfer. This study aims to examine the roles of FDI on economic growth in developing countries, by focusing on the mediating roles of technological transfer. Utilizing a narrative review approach, this study synthesizes peer-reviewed literature from the Scopus database, focusing on both empirical and theoretical contributions. A theoretical framework grounded in neoclassical growth theory and technology diffusion theory was developed to elucidate the relationship between FDI, technological transfer, and economic growth. In addition to the roles of technological transfer in amplifying the impact of FDI on economic growth, the framework also highlights the moderating roles of country’s absorptive capacity. This study contributes to the literature by elucidating the mechanisms underlying FDI-led growth and developing a framework that enables policymakers to make more strategically informed decisions.

Keywords: Foreign Direct Investment; Technological Transfer; Economic Growth; Absorptive Capacity; Developing Countries (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-827-1_10

Ordering information: This item can be ordered from
http://www.springer.com/9789464638271

DOI: 10.2991/978-94-6463-827-1_10

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().