Affordable Access

Publisher Website

How does technology transfer affect backward linkages? A motivating example theoretical analysis

Authors
Journal
Economic Modelling
0264-9993
Publisher
Elsevier
Identifiers
DOI: 10.1016/j.econmod.2014.05.029
Keywords
  • Multinational
  • Foreign Direct Investment
  • Backward Linkages
  • Technology Transfer

Abstract

Abstract This paper develops a model in which the presence of a multinational leads to a technology transfer to its local suppliers and also modifies the degree of backward linkages in the local economy. First, we identify the domestic market characteristics under which the multinationals increase the level of backward linkages when they enter these markets. Moreover, we investigate the conditions under which the multinational could even benefit itself from transferring technology to its local suppliers. Finally, when the multinational transfers technology, we show when the level of backward linkages in the local economy increases.

There are no comments yet on this publication. Be the first to share your thoughts.