Technology transfer, foreign direct investment and international trade

Leonard K. CHENG*, Larry D. QIU, Guofu TAN

*Corresponding author for this work

Research output: Other Conference ContributionsConference Paper (other)Researchpeer-review

Abstract

By developing a Ricardian trade model that features technology transfer via foreign direct investment (FDI), we show that technology transfer via multinational enterprises (MNEs) increases world output and trade in goods and services. When there are many goods a continuous reduction in the cost of technology transfer will cause increasingly more technologically advanced goods to go through the product cycle, i.e., goods initially produced in the advanced North are later produced in the backward South as a result of increased technology transfer via MNEs.
Original languageEnglish
Pages1-33
Number of pages33
Publication statusPublished - Aug 2000
Externally publishedYes
EventThe 2000 World Congress of the Econometric Society - Seattle, United States
Duration: 11 Aug 200016 Aug 2000

Conference

ConferenceThe 2000 World Congress of the Econometric Society
Country/TerritoryUnited States
CitySeattle
Period11/08/0016/08/00

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