Producer firms, technology diffusion and spillovers to local suppliers

Examining the effects of Foreign Direct Investment and the technology gap

Bibliographic Data

ID4836809
AuthorsJacob A Jordaan (0000-0002-6981-0584, Utrecht University, the Netherlands, corresponding author)
Year2017
Volume49
Issue12
Pages2718-2738
Publication date2017-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironment and Planning A Economy and Space (JOURNAL)
Journal identifiersISSN: 0308-518X • E-ISSN: 1472-3409
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0308518x17731942
OpenAlexW2757210523
LanguageEN
Citations received6
References cited58

In this paper, we conduct a detailed examination of the effects of Foreign Direct Investment (FDI) and the technology gap on local technology dissemination and spillovers. Using unique firm level data from surveys among FDI firms and domestic producer firms and a random sample of their suppliers in the North East of Mexico, we present new evidence showing that the effects of FDI and the technology gap are multi-faceted. FDI firms are significantly more involved in technology transfers. Their suppliers are more likely to experience positive spillovers, even when we control for the support that they receive. A large technology gap has a negative effect on technology diffusion. However, suppliers of FDI firms are more likely to receive several types of technology transfer when the technology gap with their client firms is large. As for local spillovers, we find that a large technology gap fosters positive spillovers, especially among suppliers of FDI firms and among those suppliers that are best suited to absorb new technologies

Business · Diffusion · Economics · Foreign direct investment · Industrial organization · International economics · International trade · Macroeconomics · Technology gap · Technology transfer · Economic Growth and Productivity · Firm Innovation and Growth · International Business and FDI

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