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Full-Text Articles in Social and Behavioral Sciences

International R&D Transfer And Technical Efficiency: Evidence From Panel Study Using Stochastic Frontier Analysis, Miao Wang, M. C. Sunny Wong Oct 2012

International R&D Transfer And Technical Efficiency: Evidence From Panel Study Using Stochastic Frontier Analysis, Miao Wang, M. C. Sunny Wong

Economics Faculty Research and Publications

We study the effect of foreign research and development (R&D) transferred through imports and foreign direct investment (FDI) on domestic technical efficiency using stochastic frontier analysis. Unbalanced panel results from a 77-country sample over 1986–2007 show that FDI- and imports-transferred foreign R&D have a significant impact on domestic country’s technical efficiency. Furthermore, we observe a complementarity between FDI-transferred R&D and domestic human capital. In other words, the domestic country needs to obtain a threshold level of human capital to benefit from FDI-transferred R&D. Other macro conditions such as infrastructure, political stability, and urbanization also help to improve the technical efficiency …


Output And Interest Rate Volatility As Determinants Of Fdi, Lilia Cavallari, Stefano D'Addona Jan 2012

Output And Interest Rate Volatility As Determinants Of Fdi, Lilia Cavallari, Stefano D'Addona

Lilia Cavallari

This paper examines the role of country-specific sources of output and interest rate volatility in driving FDI activities. Building on a dataset that comprises bilateral FDI flows among 24 OECD economies over the period 1985-2007, we find that output and interest rate volatility mainly act as push factors, i.e. they are more effective in deterring rather than encouraging foreign investments. A rise in host country volatilities does reduce the amount of FDI outflows in the recipient country, even after controlling for the state of the cycle. Source country volatilities, on the contrary, do not have a systematic effect on foreign …