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Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

Jürgen Bitzer () and Monika Kerekes

No 2005/7, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion - based on industry data from seventeen OECD countries during the period 1973-2000 - we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI- sending country.

Keywords: foreign direct investment; knowledge spillovers (search for similar items in EconPapers)
JEL-codes: O47 O33 E23 F21 (search for similar items in EconPapers)
Date: 2005
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