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Does foreign direct investment drive technological upgrading?

Kemeny, Thomas (2010) Does foreign direct investment drive technological upgrading? World Development, 38 (11). pp. 1543-1554. ISSN 0305-750X

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Identification Number: 10.1016/j.worlddev.2010.03.001

Abstract

This paper evaluates whether inward foreign direct investment stimulates technological upgrading, and if its impact depends on an economy’s level of social capability. FDI inflows exert a positive influence on technological upgrading over a lengthy time period for a large and diverse sample of countries. This effect is conditioned by an economy’s level of social capability, as well as its income. Among poor countries the effect of FDI on upgrading is bolstered for those endowed with higher levels of social capability. The effect of FDI on upgrading in rich countries remains positive but is weaker, and social capability exerts little disparate influence among these similarly socially capable economies.

Item Type: Article
Official URL: http://www.journals.elsevier.com/world-development
Additional Information: © 2013 Elsevier Ltd.
Divisions: Geography & Environment
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Sets: Departments > Geography and Environment
Date Deposited: 19 Sep 2013 15:55
Last Modified: 20 May 2020 02:17
URI: http://eprints.lse.ac.uk/id/eprint/52755

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