Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter?

17 Pages Posted: 6 Apr 1999 Last revised: 11 Oct 2010

See all articles by Magnus Blomstrom

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Fredrik Sjoholm

Stockholm School of Economics - Department of Economics

Date Written: November 1998

Abstract

This paper examines the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates. More specifically, we try to answer two questions, using unpublished Indonesian micro data. Firstly, do establishments with minority and majority ownership differ in terms of productivity levels? Secondly, does the degree of spillover differ with the degree of ownership in the FDI? Our results show that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers. However, the degree of foreign ownership does neither affect the level of labor productivity in foreign establishments, nor the degree of spillovers.

Suggested Citation

Blomstrom, Magnus and Sjoholm, Fredrik, Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter? (November 1998). NBER Working Paper No. w6816. Available at SSRN: https://ssrn.com/abstract=142357

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

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National Bureau of Economic Research (NBER), at New York

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Centre for Economic Policy Research (CEPR)

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Fredrik Sjoholm

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden

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