The Role of Technological Complexity and Absorptive Capacity in Internalization Decision

Arti Grover

Working Papers from eSocialSciences

Abstract: Technology transfer costs have a profound influence on the firm’s entry mode into a production sharing relationship. To explore this nexus, they associate technological complexity of the off-shored input with the organizational mode of international production sharing by extending the Antràs (2005) model. They modify the Antràs model by proposing that the low-tech input, as qualified within the model, cannot be produced in the low wage south without costly technology transfer. The cost of technology transfer in turn depends on three factors, which are the technological complexity of this input, the absorptive capacity of the host country and the wages of the host country. Theirmodel refines the results obtained in Antràs (2005). [Working Paper No. 153]

Keywords: Outsourcing; Foreign Direct Investment; Technology Transfer; Absorptive Capacity (search for similar items in EconPapers)
Date: 2010-09
New Economics Papers: this item is included in nep-cse
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... &AId=2843&fref=repec
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable

Related works:
Working Paper: The Role of Technological Complexity and Absorptive Capacity in Internalization Decision (2007)
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:ess:wpaper:id:2843

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().