Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Foreign direct investment and reverse technology spillovers
T2 - the effect on total factor productivity
AU - Amann, Edmund
AU - Virmani, Swati
PY - 2014
Y1 - 2014
N2 - The paper analyses the "feedback effect" of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth in emerging economies via technology spillovers across borders. We study the effect of R–D spillovers resulting from outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from inward FDI flows. The result confirms that FDI enhances productivity growth; however the impact is much larger when R-D-intensive developed countries invest in the emerging economies than the other way round. Country-specific bilateral elasticities also support this outcome.
AB - The paper analyses the "feedback effect" of Foreign Direct Investment (FDI) on Total Factor Productivity (TFP) growth in emerging economies via technology spillovers across borders. We study the effect of R–D spillovers resulting from outward FDI flows from 18 emerging economies into 34 OECD countries over the 1990-2010 period, comparing the impact with that of spillovers resulting from inward FDI flows. The result confirms that FDI enhances productivity growth; however the impact is much larger when R-D-intensive developed countries invest in the emerging economies than the other way round. Country-specific bilateral elasticities also support this outcome.
KW - Outward FDI
KW - Inward FDI
KW - Reverse technology spillovers
KW - Total factor productivity
U2 - 10.1787/eco_studies-2014-5jxx56vcxn0n
DO - 10.1787/eco_studies-2014-5jxx56vcxn0n
M3 - Journal article
SP - 1
EP - 25
JO - OECD Journal: Economic Studies
JF - OECD Journal: Economic Studies
SN - 1995-2856
ER -