Host country competition, labor skills, and technology transfer by multinationals

Blomström, Magnus; Kokko, Ari; Zeján, Mario

doi:10.1007/bf02707611

Cited by 137 publications

(51 citation statements)

References 5 publications

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“…For example: Gross enrolment ratio in tertiary education of India has increased with compound annual growth rate of 7.8% during 2001-2002 to 2007-2008 (Figure 3). 3 Similar trend is observed in spread of higher education clustered in southern states of Tamilnadu, Karnataka, Andhra Pradesh, Kerala but northern states like Bihar, Orissa, Uttar Pradesh, Madhya Pradesh being laggards. The composition of human capital is concentrated to some special courses with replacement of professional courses with general courses (Figure 4).…”

Section: Human Capital Base In Indiasupporting

confidence: 59%

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Foreign Shares, Human Capital and Wage Inequality: Evidence from Indian Manufacturing Firms

Baranwal¹

2017

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The interactions between Foreign Direct Investment (FDI) and human capital formations have strong implications for labour demand and supply factors in developing economies through various ways like training, direct technological diffusion, innovation and imitation. Indian economy has featured rising wage inequality and demographic dividend simultaneously since the last decade. In line with the similar research, the objective of the paper is to empirically assess this effect in Indian manufacturing firms using unbalanced panel data for the period 2001-2015. This paper uses fixed effects panel data estimation technique to get the estimates. The findings reflect that FDI is found out to be stirring up wage inequality with positive relation between relative wages and interaction term of training and FDI suggestive of positive demand side effect of FDI only through this channel.

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Section: Human Capital Base In Indiasupporting

confidence: 59%

“…It affects level of domestic investment via crowding in and crowding out effect. The indirect effects of FDI include spill-over effects [2] [3]. [4] find foreign entry through acquisition affects positively domestic firm's productivity.…”

Section: Introductionmentioning

confidence: 99%

Foreign Shares, Human Capital and Wage Inequality: Evidence from Indian Manufacturing Firms

Baranwal¹

2017

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“…Blomstrom et al (1994) in a study of Mexican firms, argue that a competitive market structure may lead to increased incidence of licensing. According to Paulsson's (1986) study of Swedish firms in India, competitive firms were most likely to license in order to exploit export opportunities while in oligopolistic industries licensing occurred mainly to exploit the domestic market.…”

Section: Introductionmentioning

confidence: 98%

Royalties vs. fees: How do firms pay for foreign technology?

Vishwasrao

2007

International Journal of Industrial Organization

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“…The level of competition, presence of educated human resources (Blomstrom et al 1995;Sjoholm 1999), the gap between the productivity of foreign and domestic firms (Wang and Blomström 1992;Perez 1997), infrastructure (Kinoshita 2001) and the institutional set up for intellectual property right protection (Smarzynska Javorcik 2004b) are among the most important host country characteristics identified in the literature.…”

Section: Fdi Spillovers: Main Determinants Methodology and Empiricalmentioning

confidence: 99%

Foreign presence and efficiency in transition economies

Kravtsova

2007

J Prod Anal

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This paper presents empirical evidence on the role of foreign presence in the performance of domestic manufacturing firms in five Central and Eastern European countries. Data Envelopment Analysis (DEA) was used to estimate a frontier for each sector with similar technology common for five transition countries in the sampleBulgaria, Estonia, Hungary, Poland and Romania. Following Simar and Wilson (J Econom 136(1): 2007), this study applies a truncated regression and bootstrap technique in a second stage post-DEA analysis. Some evidence is found to support the hypothesis that foreign presence has an overall positive spillover effects on the performance of domestic firms.At the outset of the transition from the planned to the market economy the hope was that foreign direct investment (FDI) would improve economic outcomes in Central and Eastern Europe both directly and indirectly. Given the relatively low levels of domestic investment and weak marketing capabilities of most transition economies, FDI was expected to boost economic growth and employment by accelerating investment, transferring new technologies and bringing up-to-date organizational and marketing skills to the host economies. It has been difficult, however, for researchers to evaluate whether such expectations have been borne out by experience. Studies on the impact of FDI have employed various econometric techniques and yielded mixed results.Following Hirschberg and Lloyd's (2002) criticisms of the parametric methods traditionally used to measure the indirect impact of FDI empirically, a non-parametric technique, Data Envelopment Analysis (DEA), is used in this paper to compute a single efficiency score for each observation. Additionally, we apply a methodological alternative in the post-DEA analysis developed by Simar and Wilson (2007). Truncated regression is used in combination with a bootstrap procedure to estimate confidence intervals in a test for various intra-industry spillover effects in this study.Foreign firms are found to be more scale efficient than domestic firms, but there is no strong evidence that foreign firms are more technically efficient than their domestic counterparts. Thus, the average technical efficiency of foreign firms is found to be higher than the average efficiency of their domestic counterparts only in four out of ten sectors. This fact provides some support to the existing argument that foreign firms are not automatically more efficient than domestic firms but that they are guided by the economic environment in which they operate. Therefore, in the second stage of the analysis some environmental characteristics have been identified.In this study, foreign firms are found to be more efficient than domestic counterparts in Hungary and Poland and less efficient in Bulgaria, Romania and Estonia. These findings arguably reflect some differences in local economic conditions. Furthermore, the results of post-DEA analysis 123J Prod Anal (2008) 29:91-102 DOI 10.1007 suggest an overall positive effect from foreign pre...

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Host country competition, labor skills, and technology transfer by multinationals

Abstract: F23, O30,

Cited by 137 publications

References 5 publications

Foreign Shares, Human Capital and Wage Inequality: Evidence from Indian Manufacturing Firms

Foreign Shares, Human Capital and Wage Inequality: Evidence from Indian Manufacturing Firms

Royalties vs. fees: How do firms pay for foreign technology?

Foreign presence and efficiency in transition economies

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