FDI as Effective Technology Transferred: Panel Evidence from the Transition Economies

Posted: 11 Oct 2001

See all articles by Nauro F. Campos

Nauro F. Campos

University College London; University of Michigan at Ann Arbor - The William Davidson Institute; IZA Institute of Labor Economics

Yuko Kinoshita

International Monetary Fund (IMF); University of Michigan, William Davidson Institute; Centre for Economic Policy Research (CEPR)

Date Written: May 2001

Abstract

Although the theoretical literature has identified a large number of sizeable benefits from foreign direct investment (FDI), the empirical literature has been unable to establish a significant unconditional positive impact of FDI inflows on the rates of economic growth of host countries. One reason for this difficulty is that theory equates FDI to technology transferred, while in most countries and regions of the world FDI encompasses an array of arrangements that goes well beyond pure technology transfer. This paper tests for these effects in a set of countries in which FDI is purer technology transferred: the 25 Central and Eastern European and former Soviet Union transition countries between 1990 and 1998. Our main finding is that, in this appropriate setting, FDI has the direct and significant impact on economic growth theory predicts.

Suggested Citation

Campos, Nauro F. and Kinoshita, Yuko, FDI as Effective Technology Transferred: Panel Evidence from the Transition Economies (May 2001). Available at SSRN: https://ssrn.com/abstract=285396

Nauro F. Campos (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Yuko Kinoshita

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States
202-623-5442 (Phone)
202-623-6069 (Fax)

University of Michigan, William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
858
PlumX Metrics