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• W2182091205 abstract "This paper examines how the technology that accompanies foreign direct investment (FDI) diuses in the host economy. We ask if local vendors that sell to multinational entrants acquire technology through supply chain linkages. Using a panel dataset of Indonesian manufacturing establishments from 1988 to 1996, we measure the eect of downstream FDI on local firm productivity and find strong evidence that vertical supply chains are a channel for technology transfer. In contrast, prior studies that measure the horizontal spillover of technology from foreign entrants to domestic competitors find mixed evidence of technology transfer. We conclude that considering only horizontal spillover underestimates technology transfer from FDI. This finding is consistent with the incentives of multinational enterprises: whereas they attempt to minimize technology leakage to competitors, they often deliberately transfer technology to suppliers with the aim of reducing the price and raising the quality of inputs." @default.
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• W2182091205 date "2002-01-01" @default.
• W2182091205 modified "2023-09-23" @default.
• W2182091205 title "Technology Diusion from Foreign Direct Investment through Supply Chains" @default.
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