Trade, Foreign Direct Investment, and R&D Spillovers

Walid Hejazi and A Edward Safarian
Additional contact information
Walid Hejazi: University of Toronto at Scarborough
A Edward Safarian: University of Toronto

Journal of International Business Studies, 1999, vol. 30, issue 3, 511 pages

Abstract: Attempts to measure the spillover effects of multinational enterprises on host countries have generally been cross-sectional and limited to labour productivity in manufacturing for a single country. Recent work in growth theory has measured the extent to which growth in total factor productivity in a country depends not only on domestic R&D capital stocks but also on foreign R&D capital stocks. This paper extends such work by adding foreign direct investment stocks to foreign trade as a channel linking total factor productivity levels between countries. This is done by considering the role of trade and FDI as diffusion channels for G6 R&D to the OECD countries. There are three main results: the coefficient estimates for FDI are higher than those for trade in the standard model; the importance of the trade channel is much reduced once FDI is included; and the overall spillovers increase significantly with the inclusion of FDI.© 1999 JIBS. Journal of International Business Studies (1999) 30, 491–511

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (99)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v30/n3/pdf/8490080a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v30/n3/full/8490080a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:30:y:1999:i:3:p:491-511

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().