The Effect of Spatial Proximity on Technology Transfer from TNCs to Local Suppliers in Developing Countries: The Case of AB Volvo in Asia and Latin America

: This article contributes to the limited number of studies on how agglomeration and spatial proximity contribute to the establishment of technology linkages between foreign transnational corporations and suppliers in developing countries. We use firm-level data, collected at the bus and truck plants of AB Volvo in Brazil, China, India, and Mexico, to analyze the extent to which “local” suppliers, located near the assembly plants, are in a...