Globalization and International R&D Flows into Emerging Markets: Nomothetic Evidence

Journal of Emerging Knowledge in Emerging Markets, Vol. 3, No. 9, pp. 118-141, 2011

24 Pages Posted: 17 Oct 2011

See all articles by Abdullah M. Khan

Abdullah M. Khan

Claflin University School of Business

Ashok K. Roy

Kennesaw State University

Rajaram Veliyath

Kennesaw State University - Michael J. Coles College of Business

Date Written: September 26, 2011

Abstract

In this paper we analyze the impact of some determinants of international R&D expenditures made by overseas affiliates of MNCs. We also examine whether globalization has expedited international R&D investment flows since 1995, the year that internet access was opened up to mass usage and trade barriers began to concertedly decrease worldwide, following the emergence of the World Trade Organization (WTO). We find evidence that ethnic diversity, political stability, and patent rights enforcement promotes international flows of R&D investments. Increased workers’ educational levels appear to have contradicting effects on international R&D investment flows. When we isolated the effects of globalization into its component forces of technological advancement and trade liberalization, we found some notable interaction effects, especially involving trade barriers. Increased globalization since 1995 has increased international R&D flows in the face of diminishing tariff barriers. A dataset containing more countries and more recent time horizons should help to unravel some of the counter-intuitive and confounding results that our study has unearthed.

Keywords: R&D, globalization, BRICS, OECD

Suggested Citation

Khan, Abdullah M. and Roy, Ashok K. and Veliyath, Rajaram, Globalization and International R&D Flows into Emerging Markets: Nomothetic Evidence (September 26, 2011). Journal of Emerging Knowledge in Emerging Markets, Vol. 3, No. 9, pp. 118-141, 2011 . Available at SSRN: https://ssrn.com/abstract=1682957

Abdullah M. Khan (Contact Author)

Claflin University School of Business ( email )

400 Magnolia St.
Orangeburg, SC 29115
United States

HOME PAGE: http://www.claflin.edu

Ashok K. Roy

Kennesaw State University ( email )

1000 Chastain Rd
Kennesaw, GA 30144
United States

Rajaram Veliyath

Kennesaw State University - Michael J. Coles College of Business ( email )

1000 Chastain Road
Kennesaw, GA 30144
United States

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