By Bernard Hoekman, Beata Smarzynska Javorcik
The significance of overseas know-how diffusion (ITD) for monetary improvement can hardly ever be overstated. either the purchase of expertise and its diffusion foster productiveness development. constructing nations have lengthy sought to take advantage of either nationwide guidelines and foreign agreements to stimulate ITD. The 'correct' coverage intervention, if any, relies severely upon the channels during which expertise diffuses across the world and the quantitative results of a number of the diffusion methods on potency and productiveness progress. nor is good understood. New applied sciences could be embodied in items and transferred via imports of recent sorts of differentiated items or capital items and gear, they're received via publicity to overseas purchasers or overseas traders or they're bought via arms-length exchange in highbrow estate, e.g., licensing contracts. 'Global Integration and know-how move' makes use of cross-country and company point panel info units to research how particular activities—exporting, uploading, FDI, joint ventures—impact on productiveness functionality.
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Extra resources for Global Integration and Technology Transfer (World Bank Trade and Development Series)
Example text
She produces evidence that is consistent with the hypothesis that positive productivity spillovers from FDI occur through contacts between foreign affiliates and local suppliers in upstream sectors. Her results suggest that a one standard deviation increase in FDI in the sourcing (buying) sector is associated with a 15 percent Lessons from Empirical Research on International Technology Diffusion 9 rise in output of each domestic firm in the supplying industry. Vertical spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.
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