The Evidence and Impact of Financial Globalization

Chapter 21

International Technology Transfer and Foreign Direct Investment

B.S. Javorcik

University of Oxford and CEPR, Oxford, UK

Outline

Introduction

Why should we Expect FDI to be a Source of Knowledge Transfer Across International Borders?

Evidence on Knowledge Transfer to Foreign Affiliates

Knowledge Externalities

Spillovers Within Industries

Spillovers to Upstream Sectors

Spillovers of Knowledge About Export Markets

Conclusions and Policy Implications

Glossary

References

Introduction

This article reviews the evidence on international technology transfer taking place through flows of foreign direct investment (FDI). It starts by looking at arguments for why one would expect FDI to serve as a channel of knowledge transfer across international ...