TY - JOUR
T1 - Modeling FDI-induced technology spillovers
AU - Yokota, Kazuhiko
AU - Tomohara, Akinori
N1 - Funding Information:
We are grateful to Kun-Ming Chen, Yongmin Chen, Taiji Furusawa, Jota Ishikawa, Murat Iyigun, Naoto Jinji, Dave Kritzberg, David Leblang, James Markusen, Keith Maskus, Kraus Meyer, Morihiro Yomogida, Molly Sherlock, Takaji Suzuki, Takatoshi Tabuchi, Ruqu Wang, an anonymous referee, and seminar participants at the Applied Regional Science Conference, Hitotsubashi University, and National Chengchi University for their helpful comments and suggestions for the earlier draft. The first author would like to thank Jim Markusen and Keith Maskus for their countless hours of help as thesis advisors. The second author appreciates financial support from the Research Foundation of the City University of New York and University of Pittsburgh. All remaining errors are ours.
PY - 2010/1
Y1 - 2010/1
N2 - While previous theoretical works have explored mechanisms through which technology spillovers occur, little attention has been paid to clarifying the necessary conditions for FDI-induced tech-nology spillovers. Motivated by recent empirical findings, this arti-cle provides a theoretical framework to characterize FDI's spillover effects in terms of host countries' comparative advantage. The analysis shows that the degree of spillovers varies depending on the interaction of industry and country characteristics. Skilled labor scarce countries have spillover effects only in low-tech industries, while skilled labor abundant countries have spillover effects in high-tech industries. The magnitudes of technology spillovers are smaller for skilled labor scarce countries as compared to skilled labor abundant countries.
AB - While previous theoretical works have explored mechanisms through which technology spillovers occur, little attention has been paid to clarifying the necessary conditions for FDI-induced tech-nology spillovers. Motivated by recent empirical findings, this arti-cle provides a theoretical framework to characterize FDI's spillover effects in terms of host countries' comparative advantage. The analysis shows that the degree of spillovers varies depending on the interaction of industry and country characteristics. Skilled labor scarce countries have spillover effects only in low-tech industries, while skilled labor abundant countries have spillover effects in high-tech industries. The magnitudes of technology spillovers are smaller for skilled labor scarce countries as compared to skilled labor abundant countries.
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U2 - 10.1080/08853900903442897
DO - 10.1080/08853900903442897
M3 - Article
AN - SCOPUS:74949127035
SN - 0885-3908
VL - 24
SP - 5
EP - 34
JO - International Trade Journal
JF - International Trade Journal
IS - 1
ER -