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Foreign Direct Investment and International R&D Spillovers in OECD Countries Revisited

Suyi Kim and Jungsoo Park ()

Journal of Institutional and Theoretical Economics (JITE), 2017, vol. 173, issue 3, 431-453

Abstract: We test whether foreign direct investment (FDI) is an important channel of international R&D spillovers between OECD countries. The results show that R&D spillovers through inward FDI had considerable positive effects on total factor productivity (TFP) in the 1990s, but not in the 2000s. By contrast, R&D spillovers through outward FDI had positive influence on TFP in the 2000s, but not in the 1990s. The contributions of foreign R&D are more related to FDI flows than to the size of the host countries. Finally, the countries benefiting from the R&D spillovers drastically differ from the countries contributing to the R&D spillovers.

JEL-codes: F62 O33 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mhr:jinste:urn:sici:0932-4569(201709)173:3_431:fdiair_2.0.tx_2-1

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DOI: 10.1628/093245616X14664894246884

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Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

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