International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis

Miao Wang () and M. C. Sunny Wong

World Development, 2012, vol. 40, issue 10, 1982-1998

Abstract: We study the effect of foreign research and development (R&D) transferred through imports and foreign direct investment (FDI) on domestic technical efficiency using stochastic frontier analysis. Unbalanced panel results from a 77-country sample over 1986–2007 show that FDI- and imports-transferred foreign R&D have a significant impact on domestic country’s technical efficiency. Furthermore, we observe a complementarity between FDI-transferred R&D and domestic human capital. In other words, the domestic country needs to obtain a threshold level of human capital to benefit from FDI-transferred R&D. Other macro conditions such as infrastructure, political stability, and urbanization also help to improve the technical efficiency of a country.

Keywords: R&D; FDI; trade; technical efficiency (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:40:y:2012:i:10:p:1982-1998

DOI: 10.1016/j.worlddev.2012.05.001

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